Many building managers don’t consider the actual costs of employee turnover when comparing the cost of outsourcing facilities maintenance. The cost of replacing a vacant position on a building maintenance team can be significant.
The general approach to calculating employee turnover cost is to use 150% of an employee’s annual salary. Another approach to calculating employee turnover uses the cost of hiring and training new staff: total employee turnover cost=costs of hiring new employees + costs of training new employees.
Taking a closer look at the costs to hire and train new employees can be staggering. To calculate employee turnover, a manager should consider costs due to the employee leaving, recruitment costs, and training costs.
Outsourcing building maintenance lets owners and managers control operating costs, trim down capital expenses, and reduce the need to hire and train onsite staff. Plus, the outsourced company can easily change as the needs for facilities maintenance change—either an increase or a reduction in trained professionals.
Apart from saving money and reducing employee turnover, outsourcing provides many benefits such as saving time, 24/7 service, staffing flexibility, full range of services, qualified professionals all the time, documentation for work done, ability to handle large projects, control of operational costs, no worries about vacation coverage, workers’ compensation and insurance coverage provided by outsourced firm, level of consistency, reduced risk, and quick return on investment.
