Did you know that losing a high-level or highly specialized employee costs approximately 400% of their annual salary to replace???
Though employers may think someone is easily replaceable, the fact is turnover isn’t cheap!
Hard Costs are mostly visible and are similar at most companies.
- Administrative processing of an employee’s departure
- Advertising and recruitment to find a replacement
- Interviewing and testing of candidates
- Orientation and training of new hires.
Soft Costs are sometimes harder to see but have an impact nonetheless.
- Lower productivity of the departing employee
- Lower productivity of the supervisor or employee who covers the job until the departing employee is replaced
- Time spent in training the new hire
- Lowered productivity because of a high employee turnover, therefore damaging the company morale.
So how bad is it really???
In figures, studies show that the cost of losing an employee depends upon their position.
- An entry-level employee turnover cost is between 30% and 50% of their annual salary to replace.
- A mid-level employee turnover costs 150% and above of their annual salary to replace.
- A high-level or highly specialized employee costs approximately 400% of their annual salary to replace!
So for example, say an entry-level employee earns $20,000 annually. Hiring a replacement would cost $6,000 – $10,000. That’s for a single employee only! Imagine having multiple employee turnovers. It could easily cost you hundreds of thousands of dollars for replacement alone.
Want to reduce turnover in your workplace? Reach out to me let’s talk about a training PROVEN to work and save you money!