Cost of Employee
Turnover Calculator
Employee turnover costs U.S. companies $1 trillion per year. Enter your company's metrics to calculate your annual turnover rate.
* A study by the Aberdeen Group found that companies with formal employee recognition programs had a 31% lower voluntary turnover rate than companies without such programs.
Employee Turnover Cost by the Numbers
67%
Soft Costs
Such as reduced productivity, interview time, and lost knowledge*
33%
Hard Costs
Such as recruiting, background checks, and temp workers*
The U.S. Bureau of Labor Statistics continues to report the turnover trend is continuing, and in many cases, accelerating.
The cost to replace a highly-trained employee can exceed 200% of their annual salary.
Why does employee turnover cost so much?
Employee turnover is so expensive because organizations pay direct exit costs when an employee leaves and incur additional costs to recruit and train new hires.
Direct exit costs can include payouts for accrued vacation time and unused sick time, contributions to healthcare coverage, higher unemployment taxes, and severance pay.
Decreased productivity, knowledge loss, and lowered morale also result in incidental costs.
Employee Retention and Turnover Solutions
The best way to increase retention and reduce churn is to focus on the employee experience—the culmination of all of the interactions and experiences employees have during their entire tenure with an organization—all the way from recruitment and onboarding to performance reviews, stay interviews, and offboarding.
Some key moments to focus on when developing an employee experience that promotes retention include:
Some key moments to focus on when developing an employee experience that promotes retention include:
Offering a competitive total rewards package
Nailing a productive, inclusive onboarding process
Providing manager and leadership training
Offering learning and development opportunities
Emphasizing DEI best-practices
Preventing employee burnout
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