Susan Prince, HR.BLR.com managing editor, commented on employee turnover's impact: "The cost of replacing an employee is usually estimated to be one-third of his or her annual salary.
Although that ratio varies by employer and position, the expense is significant every time an employee walks out the door."
Expertise, Secrets, Talent Lost Every Day
Turnover expenses include lost time for the HR
and hiring managers engaged in the recruitment process, along with costs for advertising, lost customers, productivity, temporary staff, and overtime.Prince
, however, highlighted the flip side: "One of the greatest single impacts that a human resource manager can have in an organization is to reduce its turnover costs."