Evaluating Employee Turnover Costs of Employee Turnover Employee turnover is inevitable. Employees come and go.
People retire or move away.
Unmanaged employee turnover can easily steal your company's knowledge base, profits and competitive edge in the market, not to mention shifting the power from you, the employer, over to the employee. Turnover isn t an easily identifiable expense. The US Department of Labor estimates that it costs a company one-third of a new hire s annual salary to replace an employee. Employee turnover is very costly to any business and, ultimately, takes its toll on performance, productivity and profit. The financial and non-financial outcomes of reducing employee turnover are significant.