CEO of Metroplex Health
The Advisory Board estimates the cost of non-physician employee replacement at 1.5 times salary ($90K). Our clients are typically more conservative and calculate marginal cash savings in these components:
Additional overtime or premium labor during recruiting, onboarding, and training
Agency and advertising costs for recruiting new hire
Cost of onboarding program for new employee
Payroll costs for new employee during training
Hospitals and healthcare institutions face high turnover among their employee populations. Moreover, the responsibility for a solution to this problem often rests with Human Resources while the impact of the problem is felt across the organization.
Using even the most conservative method of calculating turnover costs, Arena’s costs are typically approximately 10% of the easily measurable cash savings generated by reducing turnover, which makes the ROI a no-brainer.