The High Cost of Losing an Employee
We’ve found that business owners – especially those in middle market companies – are often surprised by how much it costs to replace an employee.
According to Zane Benefits, a CAP study found average costs to replace an employee are:
- 16% of annual salary for high-turnover, low-paying jobs (earning under $30,000 a year).So the cost to replace a $10/hour retail employee would be $3,328.
- 20% of annual salary for mid-range positions (earning $30,000 to $50,000 a year).For example, the cost to replace a $40,000 manager would be $8,000.
- Up to 213% of annual salary for highly educated, executive positions.That means the cost to replace a $100,000 CEO is $213,000. Ouch.
With costs this high, it’s wise to invest in hiring and retaining the right people for your organization.