Provisional Blog

You know that employee turnover can be costly for high level positions. But did you also know the cost to replace an entry level employee can also be quite high? According to the Society for Human Resource Management (SHRM), replacing an entry level employee, on average, costs anywhere from 30-50% of that individual’s salary.

Here’s an example:

An entry level employee at your company is making $24,000/year. They decide to leave. It could cost your company anywhere from $7,200 all the way up to $12,000 to replace that employee. These costs include sourcing, screening, hiring, and training the new employee, as well as any losses in productivity.

So what can you do to retain and manage entry level employees? Here are some tips:

Pay a higher wage.

It may be tempting to pay entry level employees less, but doing so may cost you more in the long run in the form of turnover. So if you can, stretch your budget some to pay the highest salary possible to entry level employees.

Interact with your employees.

When you get to know your employees, you’ll have a better understanding of what makes them tick. As a result, you’ll be able to better motivate and manage them.

Give rewards for above-and-beyond work.

Entry level employees – and all employees for that matter – should be rewarded when they go above-and-beyond the usual call of duty. Give them an extra day off, a gift certificate, or even a small cash bonus. Not only will your employee feel valued, but they will also be more motivated to continue doing a good job.

Include financial assistance for education in the benefits package.

You can encourage employee growth by offering to pay for all or part of an advanced degree. If you’re worried that the employee will leave as soon as they earn their degree, then tie the financial assistance to their longevity with your company. For instance, they are only eligible for the assistance if they stay with your company for at least five years.

Let them know you value their input.

Just because an entry level employee is a rookie, doesn’t mean they won’t have good ideas. In fact, they may be able to offer you a fresh perspective since they are so new. So encourage them to come to you with ideas and suggestions. Even if you don’t take their input, explain to them why and let them know you appreciate their feedback.

And if you need help recruiting entry level – or any level – employees, please contact Provisional. As a leading Northwest staffing services firm, we know where to look to find high quality candidates in a variety of fields.