Mike Andes breaks down why employee turnover kills small-business profits. When people quit faster than you can train replacements, you lose money. He walks through two metrics to track to stop attrition from eating your bottom line.
Hey, everyone, it's Mike Andes. Today I'm talking about one of my failures and what you can do to avoid it in your business to remain profitable and not allow this to eat into your profits. And at the end of the day, it's attrition. It's basically employees leaving. And right now, as we have talked about so often about the great resignation, people leaving, people wanting to work from home, people wanting to move out of state, as we see this trend happening more and more often, you're going to have higher and higher rates of attrition. You're going to have people leaving your place of work. And as good as you want to make it, that is going to happen. It's just the trend right now. As the cost of labor goes up as people move to cheaper states, this is going to continually happen. And so the question is, how do I prevent attrition from making my business unprofitable? Because at the end of the day, if it takes, you know, a month or two for someone to get trained up and you have people leaving every six to eight weeks, you'll never be profitable simply because the amount of time it takes to get someone to profitability. So there's two things I want you to track when it comes to attrition and making sure it's not going to affect or hurt your business too much. The first thing you want to track is how long or the time till it takes to be make a new hire profitable. How long does it take to make a new.
