Understanding The Financial Impact Of Recruitment Metrics

HR: Employees are leaving jobs. CFO: Do we have data on why they’re leaving? HR: Yes. 70% of our turnover is tied to unmet needs like growth, recognition, and flexibility. CEO: But how much does it actually cost us when they leave? HR: Each lost employee costs 1.5x their salary to replace, not to mention the productivity gap. CEO: We need to reduce spending. We can't spend on engagement programs. CFO: What’s the impact of these engagement programs on retention? HR: Programs focused on growth and recognition have reduced turnover by 25%, saving us $3M annually. CEO: Are there other benefits to meeting employee needs? HR: Absolutely. Employees who feel valued are 30% more productive and report higher satisfaction. CFO: What about profitability? CHRO: Engaged teams generate 21% higher profitability. It’s not just about keeping them. It’s about keeping them productive and motivated. CEO: So cutting back on programs that meet employee needs could cost us more? CFO: The data shows there’s a significant financial impact. HR: Meeting employee needs isn’t just an expense. It’s an investment in retention, productivity, and profit. The lesson? Employees quit when their needs go unmet, whether it’s for growth, recognition, or flexibility. Invest in your employees.

HR loves to brag about turnover rates and hires made. But most leaders still see that as busywork. We track turnover, retention, and jobs filled. But those numbers only tell part of the story. What if we started asking a different question: What difference did our work actually make? That’s the difference between activity and impact. Let’s look closer. ✅ 𝗬𝗼𝘂 𝘁𝗿𝗮𝗰𝗸𝗲𝗱 𝘁𝘂𝗿𝗻𝗼𝘃𝗲𝗿. But what was the cost savings of reducing it? Less recruiting spend. Lower training costs. → 𝘛𝘩𝘢𝘵’𝘴 𝘪𝘮𝘱𝘢𝘤𝘵. ✅ 𝗬𝗼𝘂 𝘁𝗿𝗮𝗰𝗸𝗲𝗱 𝗿𝗲𝘁𝗲𝗻𝘁𝗶𝗼𝗻. But did it connect to results or revenue growth? When people stay, work moves quicker and clients win. → 𝘛𝘩𝘢𝘵’𝘴 𝘪𝘮𝘱𝘢𝘤𝘵. ✅ 𝗬𝗼𝘂 𝘁𝗿𝗮𝗰𝗸𝗲𝗱 𝗷𝗼𝗯𝘀 𝗳𝗶𝗹𝗹𝗲𝗱. But did you measure their speed to productivity? Time to productivity ties directly to results. → 𝘛𝘩𝘢𝘵’𝘴 𝘪𝘮𝘱𝘢𝘤𝘵. 𝗛𝗲𝗿𝗲’𝘀 𝘁𝗵𝗲 𝘁𝗵𝗶𝗻𝗴: → Leaders don’t wake up excited about activity metrics. → They care about business results. When you start showing impact, everything changes. → Your conversations with executives shift. → Your seat at the table feels more secure. → And your HR work gets the visibility it deserves. 𝗦𝗼 𝗵𝗼𝘄 𝗱𝗼 𝘆𝗼𝘂 𝗯𝗲𝗴𝗶𝗻? ➡️ Translate every HR metric into a business outcome. Ask: Did this effort save money? Did it increase revenue? Did it reduce risk? ➡️ Use dollar signs whenever you can. Executives notice dollars. ➡️ Connect people data to business goals. Show how HR work drives the bottom line. Tracking activity keeps you busy. Tracking impact shows your value. The choice is yours. What’s one HR metric you could reframe to show real impact? If this helped, share it with someone in your network who tracks HR data. ♻️ I appreciate 𝘦𝘷𝘦𝘳𝘺 repost. 𝗪𝗮𝗻𝘁 𝗺𝗼𝗿𝗲 𝗛𝗥 𝗶𝗻𝘀𝗶𝗴𝗵𝘁𝘀? Click the "𝗩𝗶𝗲𝘄 𝗺𝘆 𝗡𝗲𝘄𝘀𝗹𝗲𝘁𝘁𝗲𝗿" link below my name for weekly tips to elevate your career! #HRAnalytics #PeopleData #HRMetrics Adams HR Consulting Stephanie Adams, SPHR

The True Cost of Turnover: How HR Can Shift C-Suite Thinking Turnover is far more expensive than most leaders realize—and HR must make this clear. Leaders act when they see data-driven evidence of the cost of current practices and the value of investing in people. Here’s how HR can lead the charge: Present Turnover as a Financial Crisis. Most executives underestimate the true cost of turnover, often citing figures like $4,000 per employee. The reality? Replacing a single employee can cost a multiple of their salary due to lost productivity, training expenses, and team disruption. Accurate metrics change the conversation. Use Dashboards That Connect People Data to Business Outcomes. Provide leaders with metrics on turnover costs, employee well-being, and internal promotions. Include absenteeism, use of employee assistance programs, and engagement levels. When HR connects these data points to financial performance, it paints a compelling picture. Demand Vendor Accountability for Usable Data. Many HR leaders can’t analyze hiring and retention effectively because vendors hoard their data. Insist on receiving usable, compatible datasets—or require vendors to deliver actionable insights. This transparency empowers better decision-making. Showcase Real-World Success Stories. Companies like Walmart and Neiman Marcus have transformed operations by addressing turnover with data. Walmart redesigned roles and schedules, while Neiman Marcus improved benefits and stopped outsourcing recruitment, all driven by HR’s insights. Counter Reactive Layoff Strategies with Evidence. Layoffs and unfilled vacancies often harm financial performance. Research shows longer vacancies lower returns on assets by 5-6% quarterly. Sharing these insights positions HR as a strategic advisor rather than a compliance function. HR can redefine how the C-suite views human capital by showing the hidden costs of inaction and the gains from prioritizing people. Learn more at https://buff.ly/3BQIiLm