CALCULATE YOUR OWN COSTS - What is your turnover costing you?

The Costs of Employee Turnover for Your Organization

The Society for Human Resource Management recently reported that it costs an average of over $7,000 to hire an employee. If your dealership or organization loses/replaces 15 sales people per year (average high turnover environment loses at least this amount with a full staff of 15), your annual turnover cost is a minimum of $105,000. This does NOT include lost opportunity as a result of wrong hire decisions. With these costs it will pay to implement some fail safe processes to decrease turnover, especially if they're steps that can be implemented at no- or low-cost.


YOUR COST     PREVIOUS YEARS NEW HIRE TOTAL   X   $7,000   =   YOUR ANNUAL TURNOVER COST


Four primary areas of tangible turnover costs:

Secondary tangible costs include: