Costs Related to Employee Turnover

Reduce Employee Turnover by Developing your Supervisors and Managers

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The following costs related to employee turnover should be considered when planning your organization’s retention strategy.

  • Loss of productivity
  • Cost of overtime or temporary help
  • Lost efficiency, including the interaction and institutional knowledge
  • Lower morale of co-workers
  • Recruiting costs (advertising cost, time, management of websites)
  • Search firm fees (often equivalent to 30 per cent of new hire’s first-year salary)
  • Screening of applicants
  • Interviewing time
  • Hiring costs like testing, background checks, drug screens
  • Relocation expenditures, temporary housing
  • Sign-on bonuses
  • Time spent onboarding
  • Training
  • Assimilation into the work team
  • Lower productivity during learning period—for both the new individual and those providing the training
  • Loss of other employees
  • Lost customers
  • Lost contracts or business

What financial impact would an 18% reduction in employee turnover have in your organization?

According to a Gallup poll of more than one million workers, the number one reason people leave their employer is because of their immediate manager. We developed a training program for supervisors and managers that will reduce employee turnover in your organization. One of our clients saved over a million dollars by reducing their turnover rate by 18%. Take a quick look now to learn how:

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