{"id":6362,"date":"2015-01-28T16:00:04","date_gmt":"2015-01-28T15:00:04","guid":{"rendered":"http:\/\/www.viasto.com\/en\/?post_type=post&p=6362"},"modified":"2020-01-30T10:17:50","modified_gmt":"2020-01-30T08:17:50","slug":"turnover-costs-much-losing-staff-member-really-cost","status":"publish","type":"post","link":"https:\/\/www.viasto.com\/en\/blog\/turnover-costs-much-losing-staff-member-really-cost\/","title":{"rendered":"Turnover costs: How much does losing staff really cost?"},"content":{"rendered":"

Figures varying depending on country, industry and size of the company, and the position of the employee, however it is estimated that the loss of a staff member can cost from $10 000 to upwards of millions (if a CEO were to be replaced).<\/p>\n

<\/p>\n

The US Labor Department estimates that it costs on average, one third of a new hire\u2019s annual salary to replace them \u2013 whereas a study by the Society for Human Resources Management (SHRM) claims that replacing\u00a0someone can, on average, cost between six to nine months\u2019 salary, and up to five times, for executive positions. Let’s dig deeper here and see why turnover costs are more than just the costs of replacing someone!<\/p>\n

More than just replacement costs<\/span><\/h5>\n

Hiring a replacement involves costs in advertising, screening, interviewing and hiring new candidates<\/strong>, as well as the cost of onboarding<\/strong> and training<\/strong>.<\/p>\n

Companies also suffer from a loss of productivity and team morale<\/strong>. Remaining staff are left with an increased workload and higher stress level, and a skills shortage may also be evident. High turnover can\u00a0also cause staff to question why employees keep leaving<\/strong>, which has a bad effect on the team and can cause others to follow suit.<\/p>\n

The newly employed need time to bring value<\/span><\/h5>\n

Normally, a new employee is a cost to a company, and over time they will become an asset. Except if you’re hiring someone who does not fit at all… (Calculate the cost of a mis-hire here<\/a><\/strong><\/em>!). It takes time to train an employee into bringing value, and the longer a candidate stays in a company, the more they know and more productive they become.<\/p>\n

The impact of high turnover not only affects a company\u2019s\u00a0infrastructure and moral, but can also inflict other costs, as new employees are more likely to make mistakes. This can cause a decrease\u00a0in customer satisfaction, sales and client relations and product quality.<\/strong><\/p>\n

Top 3 reasons an employee leaves<\/span><\/h5>\n

There are several reasons why employees leave the company:<\/p>\n

    \n
  • The Harvard Business Review found that 80% of employee turnover is due\u00a0to bad hiring<\/strong>.<\/li>\n
  • In a Robert Half survey of 1400 executives, 36%<\/strong> stated the top reason\u00a0an employee leaves is due to a poor skills match<\/strong>, with 30% stating unclear performance objectives<\/strong>.<\/li>\n
  • In the 2013 study, \u2018The Cost of Millennial Retention\u2019, the\u00a0primary reason<\/strong> a millennial leaves is because of a better offer<\/strong> from another company<\/li>\n<\/ul>\n

    So, to save your company from high turnover, make sure to hire the correct person the first time round!<\/p>\n

    How could you possibly do this? Let me show you in my next article. I will give you 4 tips for hiring the most suitable candidate<\/strong> right from the beginning.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Figures varying depending on country, industry and size of the company, and the position of the employee, however it is estimated that the loss of a staff member can cost from $10 000 to upwards of millions (if a CEO were to be replaced).<\/p>\n","protected":false},"author":10,"featured_media":7362,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"yoast_head":"\nTurnover costs: How much does losing a staff member really cost?<\/title>\n<meta name=\"description\" content=\"Turnover costs are more than just replacement costs. Read more about what other costs are included and the Top 3 reasons an employee leaves!\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.viasto.com\/en\/blog\/turnover-costs-much-losing-staff-member-really-cost\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Turnover costs: How much does losing a staff member really cost?\" \/>\n<meta property=\"og:description\" content=\"Turnover costs are more than just replacement costs. Read more about what other costs are included and the Top 3 reasons an employee leaves!\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.viasto.com\/en\/blog\/turnover-costs-much-losing-staff-member-really-cost\/\" \/>\n<meta property=\"og:site_name\" content=\"interview suite\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/viasto\/\" \/>\n<meta property=\"article:published_time\" content=\"2015-01-28T15:00:04+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-01-30T08:17:50+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.viasto.com\/en\/wp-content\/uploads\/2015\/01\/image154.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"530\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@viasto\" \/>\n<meta name=\"twitter:site\" content=\"@viasto\" \/>\n<!-- \/ Yoast SEO plugin. -->","_links":{"self":[{"href":"https:\/\/www.viasto.com\/en\/wp-json\/wp\/v2\/posts\/6362"}],"collection":[{"href":"https:\/\/www.viasto.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.viasto.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.viasto.com\/en\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/www.viasto.com\/en\/wp-json\/wp\/v2\/comments?post=6362"}],"version-history":[{"count":1,"href":"https:\/\/www.viasto.com\/en\/wp-json\/wp\/v2\/posts\/6362\/revisions"}],"predecessor-version":[{"id":14818,"href":"https:\/\/www.viasto.com\/en\/wp-json\/wp\/v2\/posts\/6362\/revisions\/14818"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.viasto.com\/en\/wp-json\/wp\/v2\/media\/7362"}],"wp:attachment":[{"href":"https:\/\/www.viasto.com\/en\/wp-json\/wp\/v2\/media?parent=6362"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.viasto.com\/en\/wp-json\/wp\/v2\/categories?post=6362"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.viasto.com\/en\/wp-json\/wp\/v2\/tags?post=6362"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}