Costs of replacing high-earning employees can top £30,000, research suggests

Replacing a member of staff who’s currently earning an above the average salary can cost companies in excess of 30,000 pounds, new research from Oxford Economics would suggest.

The study revealed that the costs are made up of several components, including advertising for a new position and hiring a replacement, but also getting them up to speed on the tasks usually associated to the position they’re occupying at that time.

The report by Oxford Economics suggests that workers in large firms can take up to 28 weeks in order to reach their optimum productivity, which equates to an overall cost of around 25,181 pounds in lost wages.

Employees at microbusinesses (between one and nine workers) only took 12 weeks to reach optimum productivity, while those at SMEs (1-250 workers) took 24 weeks.

Logistical costs associated to the position are typically significantly smaller, on average businesses spending around £5,433 in order to successfully hire a new employee.

Implementing a very solid and reliable workforce management system might help alleviate some of the aforementioned costs by providing managers with a very good overview of the worker’s set of skills, required area(s) of improvements, etc., and this is specifically where Tensor plc’s extensive experience in this segment could be put to very good use.

Tensor plc supplies a full range of solutions designed specifically to streamline workforce and skill management within companies of any sizes. Our WinHR suite enables managers to save and easily access a wide array of data pertaining to each of their employees, thus allowing them to better use the available resources and skill ranges at any given moment.

Moreover, Tensor’s range of products offer both a high level of reliability and good value for money, which means that companies who do decide to implement our solutions will immediately see the returns, without taking a hit as far as their balances are concerned.

If you’d like to find out more about the range of workforce management and Time and Attendance solutions supplied by Tensor, just contact us or Book a Demo, our representatives will be more than happy to answer any questions or queries you might have.