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BAD BOSSES COST at Big Bad Boss .com
According to the U.S. Department of Labor (DOL):
"Turnover is an indication that something is wrong.
At a minimum, the organization and the employee
have been mismatched and often the only thing
the organization has to show for it
is another costly statistic."
The mismatch is typically between employee and immediate boss.
Some studies claim turnover costs can range from 100% to 200% or more of a departing employee's annual salary. The actual amount depends on many variables and differs based on factors such as the type of job, salary-level and required skill level.
The University of Wisconsin, Center for Community and Economic Development Extension, provides an online calculator for determining an approximate cost of turnover. A completed example is also provided.
Management in large corporations and non-profits don't care about these costs for three reasons:
- The costs are hidden in operational budgets.
- The costs are not directly attributable to a particular department or boss.
- It's not their money!
When employees have no alternative for dealing with a bad boss, they resign because:
Resigning solves their immediate problem by rendering their bad boss powerless over them.
Resigning is a form of retribution; employees know that turnover costs organizations money and this is one way they try to make employers pay.
Resigning gives them the hope, or at least the fantasy, that their bad boss will be found out by the employer and punished. (It doesn't happen.)
Resigning solves their immediate problem by rendering their bad boss powerless over them.
Resigning is a form of retribution; employees know that turnover costs organizations money and this is one way they try to make employers pay.
Resigning gives them the hope, or at least the fantasy, that their bad boss will be found out by the employer and punished. (It doesn't happen.)
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