It is considered expensive to employ a new employee and raise the employee to the level of the previous employee. When an employee leaves a company this means that the company has to incur un-budgeted expenses because of the missing headcount. It also means that the company has to employee another worker to take up that position. Untimely employee turnovers affect the production levels of a company. What follows are uncertainties. It is critical for management to consider any staff turnover as an indication of problems in the company’s operations. You need to structure your managerial role to focus on a number of factors such that the management relation with the subordinate is a core part of the managerial tactics. According to David Sirota, a NY based survey intelligence firm, the cost of loosing an employee will cost a company one-and-half times the person’s compensation.
