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Managing Your Turnover
 
Estimates of turnover costs range from 1.5 to 2.5 times an exempt employees total compensation.

For an individual making $50,000 total compensation, turnover costs could be as much as $125,000.
Imagine how much you could add to your bottom line by retaining your top talent!

Do not fall behind your competition by not understanding the full effects of turnover on your organization. Turnover has both financial and non-financial implications on your organization.

The financial costs associated with turnover are typically broken down into four categories:


  
 
  • Separation Processing Costs
    • Exit Interviews
    • Separation Administration
    • Severance Pay
    • Unemployment Taxes or Increase in Unemployment Compensation
  • Training New Hire Costs
    • New Hire Administration and Paperwork
    • Cost of Educational Literature / Materials
    • General Orientation
    • Job Orientation
  
  • Replacement Hiring Costs
    • Attracting Quality Applicants
    • Interviewing Costs
    • Testing Costs
    • Travel or Moving Expenses
    • Recruiting / Finders Fees
    • Hiring Decision Meetings and Administration
  • Lost Productivity
    • Cost of Job Vacancy
    • Overtime Costs
    • Costs Incurred while New Employees are Not Fully Acquainted to Job
    • Low Employee Morale Due to Turnover
    • Cost of Lost Customers and Sales
 
Furthermore, consequences of managers who do not feel valued can cause major turmoil within the organization		  
 
  • Unionization
  • Employee Turnover
  • Employee Absenteeism
  • Decrease in Productivity
  • Law Suits
  • Low Profit Margins
 
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