As an employee, you are more than just a link in the team. You are the one who contributes valuable knowledge, dedication, and effort to the success of the organization. For many employers, losing a strong team member is not just inconvenient but also costly. It goes beyond the expenses of hiring a new employee—the departure of a valued colleague also impacts team dynamics, knowledge transfer, and even the company culture.
In this article, we discuss why an employee's departure can have such a significant impact on an employer and how you can leverage this position during salary negotiations. Your value isn’t just measured in hours or productivity, but also in the gap that remains when you're no longer in your role.
As a boss, it can be extremely painful when an employee leaves, as this often goes beyond just the practical loss of a team member. Here are a few reasons:
1. Investment in time and energy
- As a boss, you have probably invested a lot of time and energy in guiding, training, and supporting the employee. Their departure may feel like this investment is not fully paying off.
2. Personal relationship
- You often build a personal connection with your employees. A departure can feel like the loss of a relationship in which mutual trust has been established.
3. Loss of knowledge and experience
- An experienced employee often takes valuable knowledge and expertise with them, which is not easily replaceable. This can be difficult, especially if this knowledge is essential for the team or the company.
4. Impact on team
- The departure can negatively impact the team, such as increased workload or a decrease in morale. As a boss, this can lead to feelings of disappointment or responsibility.
5. Self-reflection
- The departure can make you reflect as a boss on what went wrong. It can be confronting to question whether you missed something or could have done better as a leader.
6. Loss of unique qualities
- Every employee brings unique qualities and personality. Losing that unique contribution can leave a sense of emptiness.
7. Company culture
- A departure can disrupt the balance or dynamics within the company culture. As a boss, you often feel responsible for maintaining a positive atmosphere.
8. Practical challenges
- Recruiting and onboarding a new employee takes time, effort, and money. This can be frustrating, especially if the departure is unexpected.
9. Loyalty and trust
- A departure can feel like a break in loyalty. Even if the reasons are understandable, it can be difficult to let go of that feeling.
10. Uncertainty about the future
- The departure of an employee can create uncertainty about the future, such as the continuity of projects or retaining other team members.
Although it can be painful, it also provides opportunities to reflect, strengthen the team, and discover new talent. Sometimes, a departure can even help bring a fresh perspective to the company.
Here are some examples of the financial consequences for your employer 🡪
Example 1: Employee with an annual salary of €30,000
- Average costs: 20% of the annual salary
€30.000 x 20% = €6.000
Breakdown:
- Recruitment and Selection: €2.000
- Onboarding and training: €2.000
- Productivity loss: €1.500
- Other costs (such as loss of knowledge): €500
Example 2: Employee with an annual salary of €50,000
- Average costs: 20% of the annual salary
€50.000 x 20% = €10.000
Breakdown:
- Recruitment and Selection: €3.500
- Onboarding and training: €3.000
- Productivity loss: €2.500
- Other costs (such as loss of knowledge): €1.000
Example 3: Specialist with an annual salary of €80,000
- Costs for specialist positions: Up to 200% of the annual salary
€80.000 x 100% = €80.000
In extreme cases: €80,000 x 200% = €160.000
Breakdown:
- Recruitment and Selection: €20.000
- Onboarding and training: €30.000
- Productivity loss: €20.000
- Other costs (such as loss of knowledge): €10.000
Important to realize:
- For positions with a low salary, the costs are relatively lower but still significant.
- For specialized positions, costs can increase significantly, especially if there is a long onboarding period or a shortage in the job market.
Investing in employee retention (through better working conditions, job satisfaction, and development opportunities) can save significant costs in the long run.
