Cost to Organization of Employee Turnover and Lack of Employee Focus
Total Cost ($)
Cost Per Employee Turnover Position Salary Cost To Rehire Position (2.5 times Position Salary)
Cost studies have shown that cost to replace
an employee is actually 2.5-3.5 times salary.
Costs include termination costs, job reposting
costs, learning curve for new employee, Loss
of productivity for others filling in and hiring
costs for termed employee(relo, etc.)
Cost to replace good employee leaving to
work at a competitor.
Cost to replace bad hire who needed to be
terminated due to poor performance.
Cost of time spent on things that do not contribute to Total Cost ($)
Loss of Productivity Cost Position Salary
the organization's strategic priorities To Company
(A study conducted by Franklin Covey found
workers report spending only 49% of their
time on activities they believe are directly
linked to their organization's key priorities)
Yearly cost per employee not focused on
strategic priorities. (51% of activities 0.51 0.00
not contributing to strategic objectives)
Yearly cost to organization of not
terminating nonperforming employee.
(75% job performance, 25% of salary for
below expectation performance)
Total Cost to Organization 0.00