![]() Morale: If turnover is high in your company, morale can suffer.Lost motivation: It can be challenging for your current employees to stay motivated with so much movement happening in your company.Expert insider knowledge can be passed on to your competitors if they hire your ex-employees. Trade secrets: Your loss can be another company’s gain.There will also be a loss of production as the replacement employee ramps up in the role. Productivity dip: Expect an exiting employee’s production to dip once they’ve made their decision to leave.Knowledge loss: With every employee you lose, a certain amount of important knowledge and expertise walks out the door with them.The indirect costs of losing an employee are more challenging to track, but they can have just as much of an impact on your company. The number of hours spent doing this can add up quickly. Time to train new employees: Once you hire a new employee, you’ll need to invest time in training and coaching them on the job.Time to interview and assess candidates: The number of hours your people spend reviewing resumes, preparing for and conducting interviews, and choosing a replacement.Onboarding: Providing access to onboarding documentation, new employee equipment, paperwork, benefits packages, and providing access to company resources.Marketing, paid ads, and other advertising costs add up. Advertising: You will need to spend money to put up your job ads online.Recruitment and background check fees, and the amount of time others in your company spend on the process. Recruiting a replacement: There is always a cost to hiring new people.You can figure out a dollar value for the amount of time and resources you use to replace an exiting employee. ![]() The direct costs of employee turnover are easier to account for. Here are the direct and indirect costs of dysfunctional turnover: HIRE BETTER TODAY Direct Costs of Employee Turnover There are costs incurred not only with finding a replacement, but also the impact of turnover on morale, culture, and how it affects your customers. There are direct and indirect costs associated with each type of turnover, but dysfunctional turnover can have a bigger impact on your company.
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