Employee turnover cost InsightPULSE employee opinion surveys


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Employee turnover is inevitable and, while some employee turnover can be good, losing good performers is not only a "brain drain" of your company's human capital, it carries with it direct and indirect costs associated with both the separation and replacement of the very employees you would rather retain.

To a great degree, voluntary turnover is manageable. Investing in retention solutions that result in even a small percentage reduction in your company's turnover rate can realize substantial reductions in turnover expenses in the long term.

Studies have estimated direct turnover costs per employee at 25-30% of an individual employees salary/benefits package, with hidden costs inflating that figure substantially. How much does it cost your company? Use our simple calulator to see how much turnover impacts your bottom line.


Turnover Costs Calculator
Number of employees		Average annual salary
Annual turnover rate U.S. average = 15%	%	Benefits as % of salary
Turnover cash cost U.S. average = 25%

How are average turnover costs calculated? Studies by the University of Wisconsin Extension identified many direct costs associated with employee turnover. Examples are: Separation pay, termination and hiring administrative costs, exit interviews, employment advertising, employee pre-screening, interviewing, assessment testing, background checks, travel costs, moving expenses, signing bonuses, medical exams, formal and informal training time, employment literature and manuals, and a new employee's learning curve. All these are figured into the average 25% of salary estimate while at the same time recognizing your indirect costs may, in fact, make this number higher.