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What Is the Financial Impact of Employee Turnover on a Company? (Report Date: January 2003, Full Report: 19 pages) Summary This report examines the impact of employee turnover on the bottom line results of an organisation. It reveals a strong and direct link between employee turnover and a company’s financial performance: it shows that there is indeed a measurable cost in losing a talented employee, and similarly, that there is a measurable return in retaining a talented employee. The report discusses the economic advantages of employee retention and examines in detail the costs of employee turnover. It breaks down these costs into different categories: the costs incurred when employees leave the company, the costs of recruiting new candidates, training costs, lost productivity costs, loss of customers, and decrease in share price. The information in this report should convince companies of the need to devise and implement effective recruitment and retention strategies. The report clearly demonstrates that there is an undeniable link between employee turnover and the bottom line figures of an organisation. Companies that choose to overlook this fact will suffer significant financial losses and will lose their competitive advantage in the market.
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