Cost Of Employee Turnover

Managers know that employee turnover is expensive, but Most are unable to quantify the cost of turnover. The cost of hiring and training a new employee can vary greatly—from only a few thousand dollars for hourly employees to between $75,000 and $100,000 for top executives. Estimates of turnover costs may range from 25 percent to almost 200 percent of annual compensation. Costs that are more difficult to estimate include customer service disruption, emotional costs, loss of morale, burnout/absenteeism among remaining employees, loss of experience, continuity, and “corporate memory.”