Turnover issues can affect your company’s profitability, customer loyalty, sales, productivity, and employee morale. Below are examples of turnover costs from some reliable sources:

• 1/3 of a new hire’s annual salary or wage Department of Labor

• Nonprofessional position – 1.5 times the person’s annual salary

Professional position – 2.4 times the person’s annual salary Rutgers   University  –  Graduate   School  of Business

• $500 for a fast food employee HR Focus

§ $3,000 – 5,000 to replace a truck driver HR Focus · $2,000 teller position Credit Union Magazine

• 38% of an employee’s annual salary U.S. Chamber of Commerce (average for all jobs)

There are many ways to calculate turnover cost. For example, one St. Louis photocopier company figures their first year cost to hire and train a new repair person is in excess of $63,000. Their turnover cost figure includes these tangible and intangible expenses.

Tangible Costs(Easily identified)

Advertising cost for open position

Recruiting agency fee

Travel expense

Interviewer (s) time – First interview

Interviewer (s) time – Second interview

Training cost for new hire

Relocation expense

Temp-to-permanent fee

Hiring bonus

Exit interview cost

Administration costs for termination

Severance/separation costs

Unemployment compensation

Intangible Costs(More difficult to assign a cost figure)

New employee productivity costs associated with the learning curve

Management time that could have been used elsewhere

Loss productivity for existing employees who are filling in for the open position

Employees stress & conflict while the position is open

Customer needs not being met

Missed business opportunities