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Employee Turnover Costs
Employee retention has become a key issue for employers. Studies show the cost of employee – turnover are staggering:
$2,427.00 - The average cost to hire a new employee (Saratoga Institute)
$10,000 - The cost to hire a new employee stated by 45% of the surveyed Employers (William H. Mercer)
$1,128.00 - The average cost to hire a new employee (Wyatt Data Services)
$2,328.00 - The cost to hire a new non-exempt employee (Employment Management Association of the Society for Human Resource Management)
$9, 328.00 - The cost to hire a new exempt employee (Employment Management Association of the Society for Human Resource Management)
Calculating Turnover Costs
To Calculate your lowest annual turnover cost:
1. _____ The number of new employees hired –as a result of turnover – in the past 12 months
2. _____ The result of multiplying the answer in #1 by $1,128.00
(This is your estimated LOWEST Annual Turnover Cost)
To Calculate your highest annual turnover cost:
1. _____ The number of new non-exempt employees hired – as a result of turnover – in the past 12 months
2. _____ The result of multiplying the answer in #1 by $2,328.00
3. _____ The number of new exempt employees hired –as a result of turnover – in the past 12 months
4. _____ The result of multiplying the answer in #3 by $9,328.00
5. _____ The result of adding the answer in #3 and #4.
(This is your estimated HIGHEST Annual Turnover Cost)
Your company’s annual cost for turnover is somewhere between the results obtained in the two formulas.
Employee Assistance Programs are designed to resolve personal and interpersonal problems berfore termination is necessary. EAP’s are also a value added – service that improve the benefits packages offered to employees and make your company a more attractive employer than similar companies without EAP benefits.
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Midlantic Business Alliance
867 Sussex Blvd.
Broomall, PA 19008
(800) 533-3732
(610) 604-0588 (fax)
Contact Member Services | | | © 2008, MBA. All rights reserved. |
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