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The High Cost of Employee Turnover

The High Cost of Employee Turnover

Employee turnover costs money, and the cost typically is a lot higher than most managers think it is.

The cost of turnover includes everything from recruiting costs, the time to screen and interview new candidates, and the time and money to train the new employee to the cost of lost work time while all this is taking place.

In some positions, lost work translates into lost business because customers or potential customers go somewhere else while the new employee is on the learning curve of effectively performing the job.

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More Than a Gut Feeling™ IV


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The Bottom Line...

Some companies have identified employee-turnover costs as ranging from 35 percent to as much as 100 percent of the employee’s annual salary. One organization estimated that it cost them in excess of $10 million annually to recruit, hire, and train more than 500 new manager-trainees. Bottom line: Employee turnover—for whatever reason—is extremely costly!

Obviously, you can’t hope to eliminate employee turnover completely; it’s a fact of modern business life that people change jobs. But you can reduce needless employee turnover—by doing all you can to make certain you hire the right person in the first place.

More Than a Gut Feeling IV - The Bottom Line

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