Back To Compensation Today

The Cost of Losing Employees

Topics: Retention
This is an excerpt from our ebook collaboration with BambooHR “Managing Employee Turnover.” Download the full guide here.

The formula for measuring employee turnover is:

According to SHRM, the cost of replacing an employee is somewhere between 90 percent and 200 percent of their annual salary; researchers at Columbia University pegged it at 150 percent, depending on the position.

According to SHRM, the cost of replacing an employee is somewhere between 90 percent and 200 percent of their annual salary.Click To Tweet

But the true cost of losing an employee is even more expensive than your organization is likely to realize, because the costs are often hidden, delayed or difficult to attribute.

And the costs of turnover go beyond just dollars. They include:

  • Lower organizational morale
  • Lower organizational engagement
  • Lower organizational performance
  • Additional training for new employees
  • Loss of knowledge retention (aka “tribal knowledge”)

Additionally, if you’re constantly recruiting because of high turnover, you’re stuck in a cycle of hiring instead of engaging and encouraging high performers.

Want the step-by-step on managing employee turnover? Grab your copy of “Managing Employee Turnover” today!

Learn More About Our Compensation Software


 

Tell Us What You Think

How do you reduce employee turnover? We want to hear from you. Share your story in the comments.

Image: Vitaly/Unsplash


Leave a Reply

avatar
  Subscribe  
Notify of
Start the Transformation

We can help you bring modern compensation to life in your organization.