Tackling employee turnover costs | The Oxford Review - OR Briefings

Tackling employee turnover costs

Research Briefing

With the costs associated with turnover being estimated at 1.5 – 2 times the cost of an individual employee’s salary, a high employee turnover rate can be extremely expensive for an organisation.

A new study by a researcher at Northcentral University in the US has looked at how to tackle the problem through a series of case studies in the financial sector.

Turnover costs

One company had a serious problem of staff leaving at a high frequency. This impacted the bottom line through the costs of recruiting, marketing and training new employees. A more experienced new employee may get a higher salary than a less experienced one, but the less experienced individuals require more training and often aren’t as productive.

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