It can take one to two years for a new hire to reach the productivity of an existing employee. For C-level positions, the cost is higher still - up to 213% of their salary.
For those in technical positions, it’s 100% to 150% of their salary. There are various figures out there about the true cost of employee turnover, and even the most optimistic among them seems bleak.Īccording to, the average cost of replacing an hourly employee is $1,500. What’s more, high turnover rates can ruin your company’s reputation and hurt your ability to attract talent. While you can’t prevent everyone from leaving, reducing the reasons they have to leave can improve the satisfaction of everyone within the organization. This reflection can damage morale and hurt company culture. When employees see their co-workers leaving, they often take time to reflect on why. Here’s why: Employee Turnover Lowers Morale
Reducing employee turnover should be a top priority for businesses. The solution can save valuable time, energy, and money, and implementing it is simpler than you might think.
Those hidden costs can drastically affect companies’ bottom lines and company culture. There are many reasons most employers strive so hard to retain their employees.įor starters, the cost of employee turnover is often 1.5 to 2 times the amount of the exiting employee’s salary.īut there are hidden costs too - costs that extend beyond what it takes to advertise the position, train the new hire, and recover lost productivity.
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