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Expensive layoffs for the company: How much it costs to fill the position

2024-03-08T06:37:27.910Z

Highlights: Expensive layoffs for the company: How much it costs to fill the position.. As of: March 8, 2024, 7:30 a.m By: Carina Blumenroth CommentsPressSplit If employees are not satisfied, a job change may be necessary. If companies hire new employees, this is associated with costs. If an employee leaves, the position is often filled, which incurs some costs. When companies try to retain and retain employees, it is often cheaper than hiring new employees.



As of: March 8, 2024, 7:30 a.m

By: Carina Blumenroth

Comments

Press

Split

If employees are not satisfied, a job change may be necessary.

In order to fill the position, the company has to invest a lot of time and money.

For many employees, job satisfaction depends on various factors.

For example, too little pay, appreciation or too much stress can be frustrating.

But the decision to leave a 'safe' job is not easy, if you notice six signs in yourself, it is advisable to quit without having a new job in sight.

When capable employees decide to leave a company, the manager is usually to blame.

What it means for the company when a position needs to be filled.

Layoffs cost money: what companies face

If companies hire new employees, this is associated with costs.

© Adamgregor/Pantermedia/Imago

If an employee leaves, the position is often filled, which incurs some costs.

The white paper from the portal

Teamecho.com

assumes an annual salary that the company must raise if the position is to be filled.

The total is made up as follows:

  • vacancy

  • Recruiting

  • Time-to-hire: including costs that arise due to the open position

  • training

Don't miss out: You can find everything about jobs and careers in the career newsletter from our partner Merkur.de.

For a good employee, this entire process should even cost 150 percent of the annual salary,

Capital.de

informs , citing information from the National Business Research Institute (Texas).

But the attitude isn't enough; the person has to be trained and then needs some time until they can perform to their full potential.

Teamecho.com

estimates that it takes an average of eight months for a person to be able to work productively.

However, the assessments differ.

Zavvy.io

relies on a Gallup report that estimates it takes about twelve months for a person to be fully productive.

Others assume that the onboarding process went faster and is over when the probationary period ends.

This covers a maximum period of six months.

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Costs due to the former employee

That's not all, in some cases it may also cost the former employee money.

For example, the payment of remaining vacation days.

If an exemption occurs, the salary will continue as normal and the employee no longer needs to appear at the company.

Depending on the reason for the professional separation, legal fees and court costs may also be added.

Depending on the company and the order situation, a replacement or temporary worker may be hired to support you in the meantime.

When companies try to retain and retain employees, it is often cheaper than hiring new employees, informs the

Sage.com

portal .

Source: merkur

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