Report cost to replace employee for example one

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Report: Cost to Replace Employee: For example, one report stated that for employees with an average salary of $40,000, it costs 30 to 50 percent of their salary, or an average of $16,000, to replace each employee. If the employee is mid-level with an average salary of $80,000, the replacement cost per employee is $120,000, or 50 percent of their salary. And, for senior level employees, who require more extensive recruitment, if the average salary is $120,000, the replacement cost can be as high as $500,000, or 400 percent of their salary (Borysenko 2015). Critique of Report: The report acknowledged that these costs could be inflated. But the author, Borysenko (2015), noted that even conservative estimates of turnover costs are high. For example, using an across-the-board estimate of 30 percent of the salary as the replacement costs, it can cost as much as $12,000 to replace an entry-level employee, $24,000 to replace a mid-level employee, and $36,000 to replace a senior executive (Borysenko 2015). While these costs are less, they still represent a significant expense. Conclusions: While other reports offer different amounts as the costs to replace employees, all scholars agree that turnover costs can be extensive. It is in an organization’s best interest to attract and retain moral and ethical employees. This is easier to do if an organization has a good reputation, making this an important advantage of operating an ethical organization. Attractive to Better Investors, Suppliers, and Customers
Attractive to Investors: When investors seek businesses or nonprofits to invest in or donate money to, they often consider the organization’s reputation as they decide where to spend their money. If an organization has a reputation for being ethical, conducting operations in a morally sound manner, it will attract high-quality investors. Attractive to Suppliers : The same is true of suppliers. Reputable dealers that supply goods and services to other businesses and organizations will seek to conduct trade with ethical organizations. Thus, if an organization is ethical, it will attract high-quality suppliers. Attractive to Customers: This also applies to customers. Many customers in the marketplace prefer to conduct business with organizations that are recognized as ethical entities, doing business on a moral foundation. Customers who place a priority on ethics tend to be loyal customers when they find organizations that meet their moral standards. This benefits organizations by providing them with a more stable customer base, ensuring their ability to remain in business. Additional Positive Effects When organizations operate in a manner that is morally and ethically appropriate, attracting employees who are moral and ethical, they will have a better workforce. This results in workers who are more dedicated to the organization and willing to work harder to achieve that organization’s goals and objectives. This has the impact of helping the organization produce higher quality services and products. When an organization’s services and products are better quality, customers are better satisfied and the organization does more business. Thus, this is another benefit of operating an ethical

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