![]() ![]() Just think about it: every open position represents hours and hours of work for recruiters, HR professionals and hiring managers, who have to sort through applications and resumes, deliberate and narrow down the applicant pool, schedule and participate in interviews, and then meet again to select a candidate. This includes everything from the the cost of developing an updated job description to the cost of training the new employee, and everything in between. Recruitment costs are those that an employer incurs looking for someone to fill their newly vacant position. In this way, every employee that leaves an organization, even those who resign or retire, will cause an employer to incur at least some expenses related to the separation. What many employers forget to include in their estimates of separation costs, however, is the time other employees spend processing the employee’s termination, including removing the employee from payroll or benefits systems, conducting exit interviews, etc. Separation costs are the costs an employer incurs during the process of terminating an employee, including severance pay, costs associated with unemployment insurance claims, the expense of continued benefits, etc. ![]() The costs associated with replacing an employee can be generally sorted into one of three categories: separation costs, recruitment costs and productivity costs. The chart below indicates the breakdown of replacement costs that an employer might incur to replace certain levels of employees: Position Type Average cost of employee turnover by position type ![]() employee turnover) is about 50 percent of that employee’s annual salary. How much does employee turnover cost your business? Hint: It’s probably more than you think.ĭid you know? The average cost to replace a terminated employee (i.e. ![]()
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