When I look at companies from an ESG perspective, one of the key metrics I like to look at is employee turnover. Unfortunately, not all companies report this number and that is a shame because it is one of those metrics that are highly material to the bottom line of a company. Every business relies on the know-how and expertise of its employees. Every employee who leaves takes along some institutional memory and needs to be replaced with a person who needs to get familiar with the job and learn about existing processes, which person to ask for specific things, or simply where to find the right files on a computer or the right tools in a workshop. All of that takes time and lowers productivity, not to mention the cost of searching for qualified employees and hiring them.
Employee turnover is costly
Employee turnover is costly
Employee turnover is costly
When I look at companies from an ESG perspective, one of the key metrics I like to look at is employee turnover. Unfortunately, not all companies report this number and that is a shame because it is one of those metrics that are highly material to the bottom line of a company. Every business relies on the know-how and expertise of its employees. Every employee who leaves takes along some institutional memory and needs to be replaced with a person who needs to get familiar with the job and learn about existing processes, which person to ask for specific things, or simply where to find the right files on a computer or the right tools in a workshop. All of that takes time and lowers productivity, not to mention the cost of searching for qualified employees and hiring them.