"Big Four" reported! How high is the financial separation cost?

 

Last week, the Big Four accounting firms in the financial circle were collectively reported by employees on the "leadership message board" of People's Daily online.   The reasons and timing of the reports were also fairly uniform: the company violated rules requiring employees to work from home from Feb. 3 to Feb. 9 and not pay overtime.

After the operation came to news, it exploded in financial circles.   "Big Four" has always been the dream place for students majoring in economics and management. According to Fintegrity, the passing rate is less than 5% every year.   It is said that this time on the "leadership message board" messages reported mainly "four" young grassroots staff.   Today's young workers, a generation that grew up with the Internet, are less likely to swallow their pride than those born in the 1970s and 1980s. When they enter a company, they ask themselves: is my role important, is it valuable, and do the company's goals and mission align with my values?   If the answer is no, you will leave the company at any time. It's no surprise to them to leave, whether it's for years or months or even weeks.   Therefore, for many enterprises and managers, how to retain employees often becomes a big challenge. This is especially true for small and medium-sized enterprises. In view of the importance of finance to the company, how to retain outstanding financial talents is a required course for managers.   As the editor in chief of Fintegrity, I have calculated the cost of good financial separation.  

Generally speaking, the core talent loss, at least 1-2 months of recruitment period, 3 months of adaptation period, 6 months of integration period; There is also a recruitment fee equivalent to four months 'salary, with a failure rate of more than 40 percent.   After the employee dimission, from looking for a new employee to the new employee smoothly, the replacement cost alone is as high as 150% of the employee's annual salary.  

So, what if it was a good financial person who left?

Let's assume that the financial salary for leaving the company is 8000, and the cost of leaving the company is equal to the recruitment cost + training cost + opportunity cost + termination cost. According to this rough estimation, the cost of replacing the company is 4.8 times of the salary of the old accountant until the new employee is found to take over the company smoothly. The cost of replacing an accountant accounts for about half of the old accountant's annual salary!   More troubling:   Authorities estimate that one employee leaving will cause about three employees to think about leaving. Based on this calculation, if the employee turnover rate is 10%, 30% of employees are looking for jobs.    If the employee turnover rate is 20%, 60% of employees are looking for jobs.Employee 3 months dimission and 2 years dimission, the difference is very big! Fintegrity has compiled this survey for you from the Internet. it is  valuable for our managers. 

01

Quit after 2 weeks

Separation costs: 6000

  Reasons for leaving: two weeks after starting the company, it indicates that there is a big gap between the actual conditions new employees see and their expectations. These conditions include the first feelings of the company's environment, orientation training, treatment, system and other aspects.   In the entry interview, the actual situation as clear as possible, do not hide and do not play up, so that the new employee can objectively know his new employer, so there will not be a huge psychological gap, do not worry about the hands of the new will not come, the go is always unable to stay.  

02

Quit after 3 months

Separation cost: 8000

  Reasons for leaving: I left the financial department three months after I joined the company, mainly because of the job itself.   This may indicate some problems with the company's job setup, job responsibilities, qualifications, interview criteria, etc.  

03

Quit after 6 months

Turnover cost: 10000

  Reasons for leaving: most of the financial staff who left the company after 6 months were in conflict with their immediate superior. Managers do not understand the advantages of subordinates, and do not match their advantages with their post responsibilities, so as to give full play to their utility for the company, so as to make finance reflect its value in work, etc., which are the reasons for the financial staff to leave after half a year.   A good manager is a coach, he has the obligation and responsibility to explore potential and strengths, and cultivate subordinates, become an important driving force for their success.   The immediate superior should be the first to understand the various trends and tendencies of his subordinates, his word may solve the problem can also cause contradictions, if not handled well, team morale decline, combat effectiveness decline, will enter a bad cycle. Therefore, in a team with a large number of employees leaving within one year, pay attention to the possibility of problems with his immediate superior.  

04

2 years or so

Turnover cost: 24,000

  Reasons for leaving: financial employees who have worked in a company for about 2 years choose to leave, which is generally related to the corporate culture. At this time, finance has a complete understanding of the enterprise, all kinds of ways of doing things, interpersonal relationship, cultural environment, authorization, career development and so on are very comprehensive, even including the company's strategy, the boss's hobby.   Companies are not big or small, but a good working atmosphere can make employees happy.  

05

3 to 5 years

Turnover cost: 32000

  Reasons for leaving: a financial worker leaves after 3-5 years, which is related to career development. Without learning new knowledge and skills, with little room for salary advancement and more senior positions on offer, the best financial solution is to change jobs. But for the enterprise, the employee value at this stage is the biggest, and the turnover loss is larger.   At this time, the company should design a reasonable career development channel according to different types of financial demand structure; Understand the psychological dynamics of employees and listen to their inner voice; Research the supply and demand of the job market, take the initiative to adjust the salary, job design, the purpose of the company is to retain excellent financial, other policies can be considered flexible adjustment.  

06

More than 5 years

Turnover cost: 48,000

  Reasons for leaving: more than 5 years of financial experience, increased endurance. At this time, the resignation is on the one hand caused by the occupation boredom, we need to give him new responsibilities, more innovative jobs, to stimulate their enthusiasm.   On the other hand, due to the disunity between personal development and enterprise development, the slow development becomes the object of elimination. Employees are negligent in learning and stagnating, and are inevitably alienated and neglected by the enterprise. The enterprise develops too slowly, the rising space of finance cannot be opened, the finance that career heart is heavy cannot see new hope, inevitable meeting seeks another high position.