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Turnover may be costing you more than you think!

What is Your Organization's Cost of Turnover?

We compiled a collection of Cost of Turnover studies for you to use as a guide. The HiringSmart Cost of Turnover Calculator formulas are based on the average costs from the independent research listed below. If your organization is look to reduce turnover, consider using a pre employment assessment tool that has proven to reduce turnover up to 60%.

Source

Turnover Cost of an $8/Hour Employee

Turnover Cost of an $80K Salaried Manager

Documentation and Supporting Material

 

Society for Human Resource Management

 

 

$3,500

 

$70,000

 

Uncovering turnover costs can be a wake-up call, as it was for Walter Kalinowski, Director of HR for a company with 53 truck plazas. "We were hiring 200 employees per pay period. It was out of control. We had trouble finding people," said Kalinowski. He discovered his per-employee turnover cost was $3,500.

 

 

Coca-Cola Retailing Research Council

 

$3,637

 

$72,740

 

A major study of the employee turnover problem in the supermarket industry estimated total direct and indirect costs of replacing a supermarket cashier earning $6.50 per hour was at least $3,637.

 

 

Cornell University Hotel School

 

 

$5,688

 

n/a

 

Front Desk clerk, Miami hotel.

 

 

Legislative Update, Alaska State Senator Kim Elton

 

 

$8,000

 

$100,000

 

Hiring and training a new employee can cost from 50% to 200% of the position's annual salary.

 

 

Hay Group study

 

 

$8,000

 

$120,000

 

The cost of replacing workers range from six months of an hourly worker's salary to 18 months salary of a professional employee.

 

 

Workforce Magazine – Survey on Employee Turnover 

 

 

$10,000

 

n/a

 

45% of responding companies indicated that turnover costs are more than $10,000 per employee.

 

Cornell University Hotel School Study

 

 

$11,609

 

n/a

 

Front desk employee, Hotel in New York City

 

 

Saratoga's Human Resource Financial Report 

 

 

$16,000

 

$104,000

 

Average turnover cost equals one year's salary and benefits. This can vary widely, depending on industry, with costs much higher for retail.

 

 

Bliss & Associates Inc., Wayne, NJ consulting firm 

 

 

$24,000

 

$200,000

 

Costs of lost productivity are as important as direct costs, such as advertising or temporary staff. Total costs easily reach 150% of the annual compensation. The cost will be significantly higher (200% to 250%) for managerial and sales positions.

 

 

Research Average – Cost of Turnover, per departing employee

 

 

$9,523

 

$108,963

 

 

 

Research Average – Percentage of annual salary

 

 

60%

 

136%

 

 

  

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