Cost of

Turnover

Turnover is Quite Possibly Your Largest Profit Leak

Turnover is one of the few areas you have a lot of control over – and if your turnover is over 20% you have a huge profit leak.

A profit leak I can help you plug.

According to Work Institute’s Retention Report, the replacement cost is $16,500 per an employee earning a median salary of $50,000.

And that’s just the hard costs (advertising, interviewing, hiring, minimal onboarding and a little training).

The soft costs are far more.

Soft costs can range anywhere from an additional 30-150% of the employee’s wages. (Loss of knowledge, reduced productivity, increased over-time, remaining employees’ burnout, decreased morale in the facility, customers leaving you and much, much more)

Would $365,000 / Year Profit Help Your Business

If you have just 50 employees and just a 20% turnover rate that controllable figure is astronomical.

Conservatively figuring a hard cost + soft cost is $36,500 per lost employee.

Obviously the cost is higher for your best, most productive employees and a little lower for those not a seasoned.

That’s $365,000 – literally $1,000 per day your business is losing.

And that’s just at 20% turnover!

But it gets worse!

Your turnover situation continually gets worse because of poor hiring and onboarding practices.

And that cost just continues to snowball!

Contact me today to learn how I can help your business!