What is the Cost of Employee Attrition?

Employee turnover is a significant challenge for many organisations, and the financial implications are often more severe than anticipated. On average, voluntary turnover costs an organisation approximately $1.61 million for every 1,000 employees. 

When employees leave voluntarily, the impact goes beyond the immediate loss of talent. The remaining team members are often left with increased responsibilities, leading to higher stress levels and potential burnout. This added pressure can result in decreased productivity and morale, further straining the company’s resources.

Recruitment, hiring, and training new employees are costly and time-consuming processes. Additionally, the loss of experienced employees can disrupt workflow and negatively affect the overall efficiency of the team. These factors highlight the need for effective employee retention strategies within organisations, to ensure employees feel valued and connected to the business and it’s culture.