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    view cost

    Administration costs for termination

    Severance/separation costs

    Unemployment compensation

    Intangible Costs(More difficult to assign a cost figure)
    New employee productivity costs associated with the learning curve
    Management time that could have been used elsewhere
    Loss productivity for existing employees who are filling in for the open position
    Employees s

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    Turnover issues can affect your company’s profitability, customer loyalty, sales, productivity, and employee morale. Below are examples of turnover costs from some reliable sources:

    • 1/3 of a new hire’s annual salary or wage Department of Labor

    • Nonprofessional position - 1.5 times the person’s annual salary
    Professional position - 2.4 times the person’s annual salary Rutgers University - Graduate School of Business

    • $500 for a fast food employee HR Focus
    § $3,000 - 5,000 to replace a truck driver HR Focus · $2,000 teller position Credit Union Magazine

    • 38% of an employee’s annual salary U.S. Chamber of Commerce (average for all jobs)
    There are many ways to calculate turnover cost. For example, one St. Louis photocopier company figures their first year cost to hire and train a new repair person is in excess of $63,000. Their turnover cost figure includes these tangible and intangible expenses.

    Tangible Costs(Easily identified)
    Advertising cost for open position

    Recruiting agency fee

    Travel expense

    Interviewer (s) time – First interview

    Interviewer (s) time – Second interview

    Training cost for new hire

    Relocation expense

    Temp-to-permanent fee

    Hiring bonus

    Exit interview cost

    Administration costs for termination

    Severance/separation costs

    Unemployment compensation

    Intangible Costs(More difficult to assign a cost figure)
    New employee productivity costs associated with the learning curve
    Management time that could have been used elsewhere
    Loss productivity for existing employees who are filling in for the open position
    Employees st

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    he person’s annual salary Rutgers University - Graduate School of Business

    • $500 for a fast food employee HR Focus
    § $3,000 - 5,000 to replace a truck driver HR Focus · $2,000 teller position Credit Union Magazine

    • 38% of an employee’s annual salary U.S. Chamber of Commerce (average for all jobs)
    There are many ways to calculate turnover cost. For example, one St. Louis photocopier company figures their first year cost to hire and train a new repair person is in excess of $63,000. Their turnover cost figure includes these tangible and intangible expenses.

    Tangible Costs(Easily identified)
    Advertising cost for open position

    Recruiting agency fee

    Travel expense

    Interviewer (s) time – First interview

    Interviewer (s) time – Second interview

    Training cost for new hire

    Relocation expense

    Temp-to-permanent fee

    Hiring bonus

    Exit interview cost

    Administration costs for termination

    Severance/separation costs

    Unemployment compensation

    Intangible Costs(More difficult to assign a cost figure)
    New employee productivity costs associated with the learning curve
    Management time that could have been used elsewhere
    Loss productivity for existing employees who are filling in for the open position
    Employees s

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    ller position Credit Union Magazine

    • 38% of an employee’s annual salary U.S. Chamber of Commerce (average for all jobs)
    There are many ways to calculate turnover cost. For example, one St. Louis photocopier company figures their first year cost to hire and train a new repair person is in excess of $63,000. Their turnover cost figure includes these tangible and intangible expenses.

    Tangible Costs(Easily identified)
    Advertising cost for open position

    Recruiting agency fee

    Travel expense

    Interviewer (s) time – First interview

    Interviewer (s) time – Second interview

    Training cost for new hire

    Relocation expense

    Temp-to-permanent fee

    Hiring bonus

    Exit interview cost

    Administration costs for termination

    Severance/separation costs

    Unemployment compensation

    Intangible Costs(More difficult to assign a cost figure)
    New employee productivity costs associated with the learning curve
    Management time that could have been used elsewhere
    Loss productivity for existing employees who are filling in for the open position
    Employees s

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    cludes these tangible and intangible expenses.

    Tangible Costs(Easily identified)
    Advertising cost for open position

    Recruiting agency fee

    Travel expense

    Interviewer (s) time – First interview

    Interviewer (s) time – Second interview

    Training cost for new hire

    Relocation expense

    Temp-to-permanent fee

    Hiring bonus

    Exit interview cost

    Administration costs for termination

    Severance/separation costs

    Unemployment compensation

    Intangible Costs(More difficult to assign a cost figure)
    New employee productivity costs associated with the learning curve
    Management time that could have been used elsewhere
    Loss productivity for existing employees who are filling in for the open position
    Employees s

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    view cost

    Administration costs for termination

    Severance/separation costs

    Unemployment compensation

    Intangible Costs(More difficult to assign a cost figure)
    New employee productivity costs associated with the learning curve
    Management time that could have been used elsewhere
    Loss productivity for existing employees who are filling in for the open position
    Employees stress & conflict while the position is open
    Customer needs not being met
    Missed business opportunities

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