One study estimates that, on average, it costs six to nine months of the salary for every salaried employee you replace. To help you understand why employee turnover is so expensive, here’s a breakdown of the essential costs.

 

The Cost of Hiring New People – On average, it takes organizations 42 days to fill open positions. During this time, significant resources are spent searching for employees. 

 

Onboarding and Training – Once the new employee is through the door, they will need to be orientated and trained. The cost will vary depending on the role and its complexity.

 

Decreased Productivity and Morale – When an employee leaves, their duties and responsibilities are often absorbed by their former colleagues. So not only are you short-staffed, but your employees are likely to feel overburdened. If not managed well, they could walk out on you too, compounding the cost of turnover that your company must absorb