Employee Turnover Cost

Turnover cost has visible parts, such as recruiting fees and training, and less visible ones, such as the work not done while the seat is empty and the months in which a new hire is paid but not yet fully productive. It is often stated as a percentage of the departing employee’s annual salary.

Published percentages vary widely, from about 21% of salary in one review of case studies to 50% to 200% in commonly quoted figures. The differences come from what is counted and which roles are measured, which is why a build-up from a company’s own numbers is more reliable than a multiplier.