The Cost of Employee Turnover

TURNOVER. 

If you’re in a local diner looking for a sweet, tasty treat, it’s a great thing.  But if you are responsible for replacing open positions in your company, it’s anything but awesome.

You know it takes a lot time, money, and company resources to recruit, interview, hire, and train a new employee.  But how much does losing an employee really cost?  Well, the exact costs vary from industry to industry and with the complexity of the position to be filled, but according to DeLoitte and Touche, the average cost of turnover is:

  • Non-professional position: $12,000
  • Professional position: $35,000
  • Managerial position: 150% of annual salary

We also found a fairly simple formula from Saratoga Institute and Keppner-Tregoe Inc that can be used to help determine the cost of replacing an employee in your company, based on the salary of the position:

  1. Annual wage: ________ X .25 = ___________
  2. Annual wage: ________ X .30 = ___________ X .25 = ____________
  3. Total turnover cost per employee (add lines 1 and 2) : _______________
  4. Total number of employees who left: _______________
  5. Total cost of turnover (multiple lines 3 and 4): ______________________

Regardless of how you choose to calculate the cost of Employee Turnover it is a real, significant, EXPENSIVE drain on your company’s cash flow.  At the Harrisonburg Radio Group, we have partnered with Stonick Recruitment Inc of Lakeland, Florida to train our staff to help you find better employees and then retain those people for the long term.

For more information on how to improve your company’s return on it’s recruiting and retention investment, call Kim Mitchell at 540-434-0331, or email her at KMitchell@HarrisonburgRadioGroup.com.