toll free 1 800 513 7277

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%

 

 

  

The Courage To Think Differently - And To Act!

chartFor a very long time, we have been measuring things in hiring and recruitment that have little or no relevance outside HR... and that completely miss the boat when it comes to predicting employee enga...

Hiring Myth #5

chartMyth #5: We need to offer top pay and top of the line benefits if we have a hope of attracting and keeping top performers.

Download the 7 secrets for HiringSmartER
What makes us different?
Join us for coffee (live presentation)