Making bad hiring decisions leads to turnover. Sometimes new hires don’t show up, they don’t meet your performance expectations, they discover they aren’t cut out for the job and quit, or leave for a variety of other reasons. Much of this turnover is preventable if we just make better decisions in the first place!
You can Google “cost of turnover” and find a wide range of estimates. One of the more conservative studies, by the Center for American Progress, says the average overall cost of turnover is about 21% of annual salary. For workers who make $30K or less it is about 16%. Still, that’s $4,830 each time an employee leaves, let alone the soft costs of disruption to your company. If you have a few employees leave each year, it becomes a big drag on your bottom line. See our blog post How $30 Can Save You $5000 and Reduce Employee Turnover to learn more.