Staff Turnover is Costing You!
How Much is it Costing You?
When you consider the costs of recruiting, interviewing, hiring, and training, it will cost you 30-50% of the annual salary of entry-level employees, 150% of middle level employees, and up to 400% for specialized, high level employees!
Do a Quick Calculation
Think of a job in your organization where there has been some turnover, perhaps supervisors. Estimate their annual average pay and the number of supervisors you lose annually. For example, if their average annual pay is $40,000, multiply this by .125% (or 125% of their annual pay, a reasonable cost estimate for supervisors). This means it costs $50,000 to replace just one supervisor. If this company loses ten supervisors a year, then 10 times $50,000 equals $500,000 in replacement costs for just supervisors. This is the bottom line cost. The top line cost? If the companys profit margin is 10%, then it costs $5,000,000 in revenues to replace these ten supervisors.