How much does employee turnover really cost? • Hacker News Board

Re: How much does employee turnover really cost?

#341

Post by obstinate » Thu, Jan 19, 2017, 4:51 AM UTC

dceddia wrote: post #327

obstinate wrote: post #225

Earlier quoted context omitted.

I used to think that, but now I make $500k and I think you could convince me to work on something I like slightly less well for $700k. Once I achieve financial independence, it will be different, but until then, changes that significantly impact the distance to that goal are motivating. The interesting thing though is that you wouldn't really want to entice me that way, because I'd guess you'd get a worse product out…

You mentioned financial independence, so you may have already done some research into that, but I'll just leave this here: http://www.mrmoneymustache.com/ And this nifty calculator: https://networthify.com/calculator/earlyretirement It's mostly about the savings rate.

Yes, I have been following him for some time. He inspired me to begin saving even harder than I was already naturally predisposed to. My savings rate is nearly eighty percent these days, so we're quite close. This calculator gives me a year based on rough numbers, which is about what I had calculated. I will probably engage in the standard one-more-year thing to make things even more certain.

Re: How much does employee turnover really cost?

#342

Post by SubuSS » Thu, Jan 19, 2017, 10:18 PM UTC

obstinate wrote: post #273

jimbokun wrote: post #254

Earlier quoted context omitted.

If you're making $500k and not financially independent, or about to be very soon, you are doing something wrong, I think.

Soon. But sooner is better.

With some very basic math and assuming an expenditure of about 120k in today's value per year (millionaire remember), taking into account 4% inflation and a 4% return rate, you need about 20MM+ to settle down with 100% financial independence. I made a bunch of assumptions like you need this for 50 years and 120k lifestyle today will be worth much more like 1.2MM in 50 years and so on. As much as I would love to be proven wrong on this math, 500k per month puts you very far indeed.

Money may not motivate me in small numbers, but this goal of financial independence (what they call fuck you money) is definitely a motivator.

Re: How much does employee turnover really cost?

#343

Post by brokenmachine » Fri, Jan 20, 2017, 5:23 AM UTC

falsedan wrote: post #336

shostack wrote: post #312

Earlier quoted context omitted.

I thought it meant having enough investments to live off dividends/interest/rent without having to touch your principle such that it continues growing on its own?

I think 'independently wealthy' describes that situation more clearly/less confusingly.

wealthy != independent.

Financial independence to me is not needing to work ever again, even if I'm living quite frugally.

Re: How much does employee turnover really cost?

#344

Post by brokenmachine » Fri, Jan 20, 2017, 5:36 AM UTC

falsedan wrote: post #337

falsedan wrote: post #335

Earlier quoted context omitted.

don't understand? children can't turn time into money, it sounds wrong to call them financially independent.

Hi downvoter, I'm not going to increase my understanding of 'time != money' without some explanation. Could you please comment so I might learn something? thanks, --falsedan

I'm not the downvoter but I'm pretty sure the original poster meant that a financially independent person no longer has to exchange their time for money, ie they can choose whatever they want to do with their time and no longer have to work just for food/shelter/etc.

Re: How much does employee turnover really cost?

#345

Post by brokenmachine » Fri, Jan 20, 2017, 5:43 AM UTC

obstinate wrote: post #341

dceddia wrote: post #327

Earlier quoted context omitted.

You mentioned financial independence, so you may have already done some research into that, but I'll just leave this here: http://www.mrmoneymustache.com/ And this nifty calculator: https://networthify.com/calculator/earlyretirement It's mostly about the savings rate.

Yes, I have been following him for some time. He inspired me to begin saving even harder than I was already naturally predisposed to. My savings rate is nearly eighty percent these days, so we're quite close. This calculator gives me a year based on rough numbers, which is about what I had calculated. I will probably engage in the standard one-more-year thing to make things even more certain.

I am very jealous. May I ask what you're doing to earn $500k? I'm guessing Finance industry.

Re: How much does employee turnover really cost?

#346

Post by obstinate » Fri, Jan 20, 2017, 7:54 AM UTC

brokenmachine wrote: post #345

obstinate wrote: post #341

Earlier quoted context omitted.

Yes, I have been following him for some time. He inspired me to begin saving even harder than I was already naturally predisposed to. My savings rate is nearly eighty percent these days, so we're quite close. This calculator gives me a year based on rough numbers, which is about what I had calculated. I will probably engage in the standard one-more-year thing to make things even more certain.

I am very jealous. May I ask what you're doing to earn $500k? I'm guessing Finance industry.

I'm a programmer at one of the big web companies.

Re: How much does employee turnover really cost?

#347

Post by pdimitar » Sat, Jan 21, 2017, 3:20 AM UTC

dtnewman wrote: post #16

Two thoughts: * It's a good idea to try to quantify the cost of losing an employee. If you at least understand what basic costs you'll incur, such as cost of hiring, training, etc. it'll give you a basis for realizing the importance of minimizing turnover (perhaps you'll even conclude that turnover isn't a big deal in your case). But it's very hard to quantify some of the largest costs such as employee moral. I was o…

    > By the time it gets to a counter-offer stage,
    > it's often too late.

This is something that has to be taught to all HR / management people. I can't count how many times I've seen this during my career; it was one of the most, if not the most, recurring tendency everywhere I was working.

Truth be told, HR/managers are people like everybody else: when things go smoothly, they don't proactively analyze if somebody is unhappy (but they're not showing it right now). However, I think this should be a part of their job.

HR/management really can borrow some wisdom from us the programmers: we not only ask why something isn't working, we also ask why something is working. They should adopt similar approach and never get too comfortable and automatically assume people are the happiest they can be simply because they are quiet.

Re: How much does employee turnover really cost?

#348

Post by falsedan » Sat, Jan 21, 2017, 10:15 PM UTC

obstinate wrote: post #340

falsedan wrote: post #338

Earlier quoted context omitted.

Hi downvoters, I don't understand why 'retirement' isn't an appropriate term, please help me grow my understanding by commenting instead. Thanks, --falsedan

Retirement is when you stop working. Financial independence is when you stop having to. They are different.

1. That's not the common meaning of 'financial independence' no matter how much you repeat it, it's really closely-associated with the coming-of-age rite when you no longer rely on financial support to survive

2. I can't imagine being independently wealthy & keeping my day job but I suppose it's conceivable!

Re: How much does employee turnover really cost?

#349

Post by falsedan » Sat, Jan 21, 2017, 10:18 PM UTC

brokenmachine wrote: post #343

falsedan wrote: post #336

Earlier quoted context omitted.

I think 'independently wealthy' describes that situation more clearly/less confusingly.

wealthy != independent. Financial independence to me is not needing to work ever again, even if I'm living quite frugally.

I don't understand the distinction; are there wealthy dependent people?

I've run the numbers on what I'd need to not work and the total amount required would clearly put me in the 'wealthy' camp.

Re: How much does employee turnover really cost?

#350

Post by brokenmachine » Mon, Jan 23, 2017, 12:09 AM UTC

falsedan wrote: post #349

brokenmachine wrote: post #343

Earlier quoted context omitted.

wealthy != independent. Financial independence to me is not needing to work ever again, even if I'm living quite frugally.

I don't understand the distinction; are there wealthy dependent people? I've run the numbers on what I'd need to not work and the total amount required would clearly put me in the 'wealthy' camp.

> are there wealthy dependent people?

I would say yes. Well, maybe not dependent but not independent.

Some people with large incomes are still up to their eyeballs in debt, or at least not living within their means.

IMO financial independence requires living within your means until the point where you never need to work again to continue that lifestyle for the rest of your life.