The cost of staff turnover
Direct and indirect costs associated with employee turnover are estimated to total 100-300% of the employee’s salary for managerial staff and 50-120% for operational staff.
This is dependent on the level, experience and scarcity of the individual.
According to the L.E.A.D. Survey, around two-thirds of leaders (66%) and just over half of managers (54%) are comfortable with the current levels of staff turnover in their organisations. This implies that they are comfortable losing some of their best people, despite the cost of that turnover being a multiple of the salaries of those staff.
If you’re comfortable losing some of your best people or failing to invest in their future, you’re missing a great opportunity to make your organisation more productive, profitable and sustainable.
From LMA’s L.E.A.D. survey book “Today’s workplace – Present realities…Future realities”, 2013
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