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Replacing Employees…the costs will surprise you!

Turnover costs you more money than you realize…

Depending on who you talk to and the level of detail you want to account for, experts say it costs between 100% to 300% of an employees’ annual compensation to replace them.  It appears that turnover costs rise as the level of the job and its complexity increases.
 

To put this into perspective, if the average annual compensation for a highly talented Appointment or Financial Coordinator is $32,000, the impact to the practice can be substantial.  Taking the cost of turnover at 100% of salary, the cost of turnover in this example is $32,000 for every employee in that salary range.  If you had only two employees a year that left the practice, the annual cost of turnover is $64,000.
 

To calculate what turnover is costing you in your office, click on this link. 

Then you may want to ask yourself the following questions:

1. What am I willing to do to stop this “bleeding”?
   
2. How long can I afford this kind of loss?
   
3. What do I need to do to implement a “proactive” process around my hiring?
   

If you have any questions, feel free to leave a comment below.
 

Dr. Ron, THE DENTAL COACH

Dr. Ron is the only Master Certified Dental Coach (MCC) on the planet. He has blended 20 years of clinical dental practice with executive roles in financial planning and investment management along his graduate business training to provide his clients with the tools, support, and accountability to accomplish more. About Dr. Ron, "I count you as one of life’s best finds", says Dr. Gary Imm of Reisterstown, Maryland. He has authored many articles; manuals; ThinBooks ^tm; TeleClasses and if you visit http://www.drarndt.com you can receive one of his FREE reports, "9 Painful Mistakes Dentists Make in the Hiring Process"

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One Response to “Replacing Employees…the costs will surprise you!”

1. Manny Diego Says:
   July 19th, 2006 at 7:39 am

   Dr. Ron,
   Do you have data for dentist turnover cost? I have been researching this and can not find a good number. Hope you can help.

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