Bangalore: Is your organization ready to deal with the cost of high turnover of Gen-Y employees? The Gen-Y is not at all ready to spend their time in something which is not meaningful and useful in any way. According to a survey by Experience.com, 70 percent of them are likely to leave their first job within a span of two years of joining. The companies hire employees with an expectation that they will be in the organization for a longer period, but many companies lack the proper work environment to put a hold on it. Do you really know how much a company has to suffer in terms of time, resource, productivity and revenue if they lose their employees in the particular year?

The cost of turnover is truly correspondent to the cost of substituting the employee. Hiring an employee on board and training them cost a lot for the employer and it’s time consuming to make the new employee work at his full capacity. According to a report by Microsoft, the cost to recruit employees at entry level in an organization costs around $3,000 to $6,000. And it takes around 30 day’s time span for the process of interviews to hiring. Training them cost another $1,273 to $1,083. Fresher generally take around 3 months to learn the entire process in an organization, and the learning cost equals to $3000.

Though it’s hard to swallow, the fact is if you are replacing a Gen-Y employee in your organization, it will cost you approximately $24,000. Therefore, the cost associated with turnover easily exceeds the cost to recruit in fact; it’s more than four times the price. Therefore, getting the right person on board is essential not only to build up a productive workforce but to impact organization's bottom-line.

It’s not that the younger generation lacks loyalty towards their work, the fault is not theirs solely, but the system is responsible too. Salary pressure at the entry level jobs, tough competition at every level, and shrinking jobs in the job market force them to make such spot decisions.