Employee Turnover Costs

Employee turnover is inevitable, but when it is excessive, employee turnover often puts a business into the red. The costs of turnover are easy to overlook or ignore - but ignore them at your own peril.
Excessive employee turnover has obvious costs you can track, but the real costs take a greater toll. Many new mployees do not become fully productive until they’ve been trained and gain experience, a process that usually takes several months. The time, effort, and money invested in those employees, walk out the door when they leave.

For a ballpark estimate of the money your organization loses to employee turnover, we suggest using a conservative one third of the total payroll of the people who turned over.

 
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