ADP SUMMER, 2014 | Vol. 23 No. 1                 
» ADP® Recognition
» Talent Management – Competitive Edge
» Compliance Functions
Add to the Bottom Line
High Cost of
Post-Recession Turnover
» Capitalize on Redefined Employee Relations
» Increase Retirement Savings Plan Participation
» Avoid 10 Common Interviewer Mistakes
» Strategies to Comply With ACA Employer Mandates
» ADP® Enhancements to
Midsized Company Platform
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The high cost of post-recession turnover –
and 5 steps you can take to lower it

With the job market heating up, job-jumping is on the rise. Top performers are usually the first to leave. This churn has a cost. According to human resource experts:

  • Employee turnover can cost up to 150% of an employee’s salary.1 At that rate, an 8% turnover rate at a company with 100 employees paid an average of $50,000 a year will result in annual turnover costs of $600,000!
  • It costs 16% of pay to replace an employee who earns less than $30,000 and 20% of pay for those earning $30,000 to $50,000. When a highly educated executive leaves, it’s even more painful – 213% of annual salary.2

Fortunately, there are steps you can take to help lower these costs. A survey conducted by Deloitte Consulting ranks five measures that could discourage turnover. While not necessarily cost-free, they may still offer savings over an excessively high turnover rate.

What would keep you with your current employer?

Source: “Talent Edge 2020: Building the recovery together – What talent expects and how leaders are responding.” Deloitte, April 2011.

Get expert advice on improving employee relations. With ADP Resource®, a designated ADP® HR Business Partner gives you HR guidance on-site or via the phone.

This article was condensed from an in-depth write-up in ADP’s BottomLine magazine, offering expert insight into today's most pressing HR management and compliance challenges. Visit the BottomLine home page to download the current and archived issues.