Staff turnover is expensive! A common “rule of thumb estimate” suggests it cost 25% to 200% of a leaving staff’s annual compensation each time someone leaves. For example, an inexpensive staff person may receive a salary of $40,000 a year. Add an additional $10,000 for health care, social security, medicare, and other fringe benefits and their annual cost is really $50,000. Using our “rule of thumb estimate,” each of these staff that leaves costs the employer anywhere from $12,500 to $100,000. Ouch!!! Have several staff with a $40,000 a year salary leave in the same year and the costs go through the roof.
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