Getting Paid

Employee Turnover is Detrimental to Profitability

A telecommunications company recently calculated the cost in replacing an operator. After considering the exit interview, administrative activities, replacement and training costs of education, and coaching, the cost exceeded $6K. In addition, there were indirect costs associated with employee turnover including increased workloads and strains as coworkers pick up the slack until new employees are hired and trained.

Downsizing Lessons Learned

Since the 1980s, about 10 million jobs have been eliminated and the downsizing trend continues as organizations hope to cut costs and improve performance. Yet, research has shown that most of the anticipated economic and organizational benefits of downsizing are not achieved. Downsizing is a chaotic and uncertain experience at best. Unfortunately, there are few guidelines on the best way to achieve the desired results.…

Downsizing: Who Is The Real Loser?

Studies reflect fewer than 30 percent of downsizing efforts have achieved anticipated profitability. This statistic suggests the real downsizing losers are organizations and stockholders. Similarly, the low unemployment figures reflect that downsized workers are no longer helpless victims. Many organizations are downsizing in one area while ramping up hiring in other areas. This decrease and expansion procedure has been coined as employee churning and this…