By Mindy Bortness, Women on Business, April 2015
Brands targeting the teen market have a business model to produce and price goods inexpensively, anticipating the mentality of “disposability” that exists within their target audience. Sadly, many businesses work from that same mentality in their approach in hiring employees. And, unlike a pair of shorts from Forever 21, replacing employees is very costly.
Billions of dollars are spent every year in the recruitment and replacement of employees. Individually, it costs between $4,000 and $14,000 to replace an hourly employee, and upwards of $40,000 to replace a manager. Tangible and intangible costs include the failed employee’s salary and benefits; advertising, recruiting and interviewing expenses; wasted management time dealing with the failing employee; cost of time required for other employees to handle failed employee’s mistakes; and more. Read more.