Costs of employee turnover

High employee turnover is a classic way companies fail to achieve acceptable profitability.

Every open position requires significant resources -- both financial and management -- to fill properly and to get the new employee fully functioning. As a rule-of-thumb, it can cost 20% to 50% of the annual wage of a position just to train a replacement.

Lost opportunity with customers is another profit thief. Customers likely will not be served as well during the replacement and retraining period.

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