Let's Calculate - How Much Does An Average Employee Turnover Cost?
Employee retention is one of the top challenges facing businesses today. The workforce is evolving and changing jobs often is not only becoming more acceptable for younger generations entering the workforce, but it's also a standard practice. Companies must be prepared to face the costs of employee turnover. By knowing what it costs to replace an employee, you can budget for programs and implement strategies that reduce turnover and increase your bottom line.
Calculating Turnover Rates
To calculate your company’s overall turnover rate, divide the number of employees who leave each year by the average number of employees on the payroll and then multiply by 100.