Top 3 Reasons for Employee Turnover

  1. Compensation and Benefits

  2. Poor Leadership

  3. Lack of Growth and Development

Employee Turnover can cost an organization a lot of money, depending upon the position. Turnover costs can include both tangible and intangible costs:

  • Morale and reduced efficiency of coworkers having to do the work of the exiting employee

  • Lost productivity for the work that isn’t being done while filling the role

  • Advertising for position

  • Time to review applications, interview, extend offer, negotiate, run contingencies, etc.

  • Onboarding and training time

  • Disruptions to Customer Service if customer facing

  • Knowledge and expertise lost

  • Impact on team dynamics

  • Damage to the organization’s reputation and brand

  • Errors and quality issues due to overburdening current workforce and mistakes by new employees

  • Delayed projects due to smaller workforce

  • Customer Dissatisfaction due to unmet expectations during transition

Depending upon the role, turnover can cost 50% to 200% of an employee’s annual salary.

Engage HR helps organizations solve these problems, schedule a consultation with us now to discuss how we can help!