In order to develop a strong and sustainable talent strategy in an extremely challenging business environment, it is crucial to understand the dynamics of price and skilled workforce. There are basically five areas where the insurance firm can analyze well in advance to better understand the expenses of unplanned employee attrition:
Firstly Recruiting, in this there are many other costs involved such as advertising costs, interview resources like time needed away from the management and leadership, the screening and testing, personal analysis, caliper, drug tests as well as placement fees.
Secondly, Training. The employee success depends highly on training. It is very important to note that the ongoing training has lesser exhaustion than training a brand new employee. It is always a tough task to begin once the process is on the go it becomes easier to maneuver as it becomes much easier to keep moving. Higher turnover creates a greater strain on the HR team.
It is often seen that when an employee leaves an organization the productivity levels of that organization dip down until a new team member is hires , trained and leveled up to the speed. However, the period before the employee is about to leave is actually quite foreseen weeks before the employee is actually leaving. Though it is quite human tendency to disengage, this could however lead to loose ends and sloppy work, which eventually needs to be taken care of by someone else.
The reworking costs are yet another aspect as there are plenty of mistakes and errors that take place in the insurance industry as it has a high level of manual processing which provides gaps for errors, add to that inexperience which gives a potentially enormous cost for having to redo the work that had already been done.