Catastrophic Cost of Quitting
THE CATASTROPHIC COST OF QUITTING: How Organizations and Employees Pay the Price —Don’t fire another employee or consider resigning until you’ve read this report…
by Ben Fanning
W elcome! Ben, here. Thanks for downloading this report. Today you’ll discover ... whether you’re an employee or employer … how to:
Easily Quantify Three Hidden Costs of Quitting
As seen in...
Share with a friend
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CATASTROPHIC COST OF QUITTING 2
A bout Ben
A Ironically it was a similar decision I’d faced in
My personal mission is to reduce the catastrophic cost of quitting for organizations and employees.
But I’d been asking the wrong the question all along. And I wasn’t alone...
any employee can use whether you’re confronting a personal decision to resign or making a retain or
Thousands
of
Share with a friend
employees
and
benfanning.com
hundreds
of
CATASTROPHIC COST OF QUITTING 3
CONTENTS Welcome.
2
About Ben
3
The Trade-Of f’s
6
The Cost of Lost Productivity from Disengagement
7
The Cost of Rehiring and Retraining
8
The Emotional Cost
10
The Simple Formula
11
H ow organizations and employees pay the price
T This isn’t taught in business school or in your typical professional development course so it’s easy to see why this is a blind spot for so many professionals.
The good news though is that there’s a simple way to consider the options and make a fully informed decision.
They go into it without understanding the complete cost or considering the full spectrum of possibilities which it can take years to recover...if they ever do.
Share with a friend
benfanning.com
CATASTROPHIC COST OF QUITTING 5
T he Trade-Of f’s
I The Employee
The Organization employees develop and invest themselves in the
Consider that the average cost of a new car is Employees on a mission are far more engaged and When you consider this cost of disengagement and losing a top employee it adds up to over -
buying a car.
turnover:
Buy a new car = $31,252 Pay for college = $31,231 Pay for wedding = $26,444 Share with a friend
benfanning.com
10, one-minute Super Bowl Commercials 11, corporate LearJets - $5MM 91,675 business trips - cost per trip $949 CATASTROPHIC COST OF QUITTING 6
T he Cost of Lost Productivity from Disengagement The Employee
The Organization
never get back. About.com says to allow 1 month for
in lost productivity according to what Forbes called ongoing State of the American Workplace study.
merit increase and bonus potential are on the line.
each day hours a week doing it according to a study conducted by Salary.com
Let’s conservatively assume your merit increase $15,000 Enter your salary x.15 = ______________
assume a top tier employee making $100k wastes on Enter employee salary _____ x 8% = ______
Share with a friend
benfanning.com
CATASTROPHIC COST OF QUITTING 7
T he Cost of Rehiring and Retraining The Employee
The Organization
As you get up to speed you’ll likely miss out on an annual increase in year one and possibly year two at the
vacation based on seniority or even if you have it you’ll be too busy to take it as you learn the ropes.
to quit for any level of pay increase Dale Carnegie Training Study.
to 20 weeks for professionals to more than 26 weeks ..... more than half a year!
For every week of vacation you lose from lack of
of salary for senior leaders. Note that Aon-Hewitt Associates estimates
assume it takes three years of service before you’re taking your full vacation again…losing a week a year
up or down. Enter employee salary ______ x ____% of salary = Cost of Rehiring and Retraining
Now dig into the cost a little deeper…instead of
The frustration factor doubles the cost to $12,000. (Enter Your Salary ______ / 52) x 3 x 2 = __________ Share with a friend
benfanning.com
CATASTROPHIC COST OF QUITTING 8
Share with a friend
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CATASTROPHIC COST OF QUITTING 9
T he Emotional Cost The Employee It’s stressful going through rounds of interviews especially if you’re concerned your current employer would be upset about it.
Plus the cost of adding a yoga class or massage to $50 $250. Total cost to you is $3,483 ((Enter Your Salary ______ / 251 days per year)*7.8 days lost productivity) + $300 = ______
The Organization -
pain of looking silly when you don’t know the same According to the Holmes and Rahe stress scale
and even trouble with the in-laws. Speaking from
than when a top performing employee leaves. It
other employees.
impede your sleeping habits. The results in lost productivity from employees with insomnia is 7.8 days per year according to CNN. We’ll assume a dollar for dollar loss on for your merit increase
Chronic turnover leads to chronic stress for employees from work overload and even paranoia about restructuring. This situation negatively
higher.
ability to thinkWellspring Institute for Neuroscience. Enter your # of employees x $7,857 = ______
Share with a friend
benfanning.com
CATASTROPHIC COST OF QUITTING 10
T he Simple Formula
N
Now put it all together with a simple formula.
The Employee
The Organization If employee’s salary _________ is less than or equal to..
Potential new salary ____________________
schedule a call with me.
Same salary for new employee _________
Consider a plan to retain them. Schedule a consultation for me for additional support.
your resume. Share with a friend
benfanning.com
CATASTROPHIC COST OF QUITTING 11
love...without quitting (or supporting your employee to
Share with a friend
benfanning.com
CATASTROPHIC COST OF QUITTING 12
Y our Next Step…
clicking here.
you closer to your goal.
Ben Fanning [email protected]
Share with a friend
benfanning.com
CATASTROPHIC COST OF QUITTING 13
by Ben Fanning
W elcome! Ben, here. Thanks for downloading this report. Today you’ll discover ... whether you’re an employee or employer … how to:
Easily Quantify Three Hidden Costs of Quitting
As seen in...
Share with a friend
benfanning.com
CATASTROPHIC COST OF QUITTING 2
A bout Ben
A Ironically it was a similar decision I’d faced in
My personal mission is to reduce the catastrophic cost of quitting for organizations and employees.
But I’d been asking the wrong the question all along. And I wasn’t alone...
any employee can use whether you’re confronting a personal decision to resign or making a retain or
Thousands
of
Share with a friend
employees
and
benfanning.com
hundreds
of
CATASTROPHIC COST OF QUITTING 3
CONTENTS Welcome.
2
About Ben
3
The Trade-Of f’s
6
The Cost of Lost Productivity from Disengagement
7
The Cost of Rehiring and Retraining
8
The Emotional Cost
10
The Simple Formula
11
H ow organizations and employees pay the price
T This isn’t taught in business school or in your typical professional development course so it’s easy to see why this is a blind spot for so many professionals.
The good news though is that there’s a simple way to consider the options and make a fully informed decision.
They go into it without understanding the complete cost or considering the full spectrum of possibilities which it can take years to recover...if they ever do.
Share with a friend
benfanning.com
CATASTROPHIC COST OF QUITTING 5
T he Trade-Of f’s
I The Employee
The Organization employees develop and invest themselves in the
Consider that the average cost of a new car is Employees on a mission are far more engaged and When you consider this cost of disengagement and losing a top employee it adds up to over -
buying a car.
turnover:
Buy a new car = $31,252 Pay for college = $31,231 Pay for wedding = $26,444 Share with a friend
benfanning.com
10, one-minute Super Bowl Commercials 11, corporate LearJets - $5MM 91,675 business trips - cost per trip $949 CATASTROPHIC COST OF QUITTING 6
T he Cost of Lost Productivity from Disengagement The Employee
The Organization
never get back. About.com says to allow 1 month for
in lost productivity according to what Forbes called ongoing State of the American Workplace study.
merit increase and bonus potential are on the line.
each day hours a week doing it according to a study conducted by Salary.com
Let’s conservatively assume your merit increase $15,000 Enter your salary x.15 = ______________
assume a top tier employee making $100k wastes on Enter employee salary _____ x 8% = ______
Share with a friend
benfanning.com
CATASTROPHIC COST OF QUITTING 7
T he Cost of Rehiring and Retraining The Employee
The Organization
As you get up to speed you’ll likely miss out on an annual increase in year one and possibly year two at the
vacation based on seniority or even if you have it you’ll be too busy to take it as you learn the ropes.
to quit for any level of pay increase Dale Carnegie Training Study.
to 20 weeks for professionals to more than 26 weeks ..... more than half a year!
For every week of vacation you lose from lack of
of salary for senior leaders. Note that Aon-Hewitt Associates estimates
assume it takes three years of service before you’re taking your full vacation again…losing a week a year
up or down. Enter employee salary ______ x ____% of salary = Cost of Rehiring and Retraining
Now dig into the cost a little deeper…instead of
The frustration factor doubles the cost to $12,000. (Enter Your Salary ______ / 52) x 3 x 2 = __________ Share with a friend
benfanning.com
CATASTROPHIC COST OF QUITTING 8
Share with a friend
benfanning.com
CATASTROPHIC COST OF QUITTING 9
T he Emotional Cost The Employee It’s stressful going through rounds of interviews especially if you’re concerned your current employer would be upset about it.
Plus the cost of adding a yoga class or massage to $50 $250. Total cost to you is $3,483 ((Enter Your Salary ______ / 251 days per year)*7.8 days lost productivity) + $300 = ______
The Organization -
pain of looking silly when you don’t know the same According to the Holmes and Rahe stress scale
and even trouble with the in-laws. Speaking from
than when a top performing employee leaves. It
other employees.
impede your sleeping habits. The results in lost productivity from employees with insomnia is 7.8 days per year according to CNN. We’ll assume a dollar for dollar loss on for your merit increase
Chronic turnover leads to chronic stress for employees from work overload and even paranoia about restructuring. This situation negatively
higher.
ability to thinkWellspring Institute for Neuroscience. Enter your # of employees x $7,857 = ______
Share with a friend
benfanning.com
CATASTROPHIC COST OF QUITTING 10
T he Simple Formula
N
Now put it all together with a simple formula.
The Employee
The Organization If employee’s salary _________ is less than or equal to..
Potential new salary ____________________
schedule a call with me.
Same salary for new employee _________
Consider a plan to retain them. Schedule a consultation for me for additional support.
your resume. Share with a friend
benfanning.com
CATASTROPHIC COST OF QUITTING 11
love...without quitting (or supporting your employee to
Share with a friend
benfanning.com
CATASTROPHIC COST OF QUITTING 12
Y our Next Step…
clicking here.
you closer to your goal.
Ben Fanning [email protected]
Share with a friend
benfanning.com
CATASTROPHIC COST OF QUITTING 13
