RETAINING TOP TALENT STRATEGIES
Retaining Top Talent and The Cost of Employee Turnover
The cost of employee turnover can drain your profit and your employee morale. The industry average for replacing an employee is 40% of their annual salary. Let’s consider you lose five employees that each earns $50,000 per year.
The cost of replacing each employee is $20,000 and therefore the cost of replacing all ten would be $100,000. You may be asking yourself, “Why is turnover cost so much?” Turnover cost includes not just recruiting cost related to advertising and employee cost of those working to fill the position, but also includes many other factors.
These factors are not limited to simply the ones found here below, but gives a general representation of the costs that can be accrued from various factors, such as advertisements for the job or the cost of overtime pay.
These costs can affect your business overall and ultimately decide whether it thrives or not. Keeping costs to a minimum is a must when it comes to creating an efficient business model and see it grow. Understanding these costs is essential to understanding how to make your business expand.
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