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The Real Costs of Turnover

There’s no quick fix to high turnover rates, but you probably already knew that.  We’re past the halfway mark for the year and there is no better time to sit down and evaluate your organization. How many employees have exited this year? Were they all men? All women? All from the same department? Asking these questions may be uncomfortable, but necessary if you want to create a high performing culture. Now, let’s get down to three reasons why evaluating staff turnover is imperative.


According to a study by the Society for Human Resource Management, employers will spend the equivalent of six to nine months of an employee’s salary in order to find and train their replacement. Other research has also shown that the average cost could be even higher. In a second study by the Center for American Progress, the cost of losing an employee can be anywhere from 16% of their salary for hourly employees to 213% of the salary for a highly trained position. Take a look at this article on the monetary costs of high turnover.


High turnover is laborious. When an organization loses a valued employee, it’s vital that time is set aside to divvy up the responsibilities of that employee’s position until a replacement is found. Then, the organization should begin to evaluate that empty position and the value it has, followed by updating the job posting, properly looking through resumes and setting up multiple interviews with a series of interviewers. Finally, after you’ve found that hidden gem, don’t forget to check references, run a background check and then start the proposal process.

This process is tiring but can be avoided if organizations strive to understand how employees feel about their workplace environment during their tenure.


Lastly, organizations have a reputation to uphold. With the rise of social media and fast communication, it is essential to have a solid reputation.  In today’s world, when one person quits, not only does the whole organization know about it, the whole world might, too.

On sites like Indeed and Glassdoor, potential candidates and customers are scouting the reputations of organizations. These websites encourage users to publish reviews of organizations by posting information such as: salary data, the hiring process, job description and employee/customer experience. This type of information can cultivate a good or bad reputation for an organization.

Understanding the impact high turnover rates can have on your company is important, but just the start. Organizations who incorporate both engagement surveys and exit surveys will gain valuable anonymous insight about employees’ feelings and attitudes about their workplace environment. This will allow you to identify problems early on, decrease the chance of unsavory reviews and help you identify retention problems by providing you with clear, concise and actionable data on why employees are voluntarily leaving your company. Although there is no quick fix to high turnover rates, there is a solution.

By |2017-09-18T19:56:19+00:00September 18th, 2017|HR Best Practices, Research & Trends|0 Comments