How to calculate employee turnover cost

A large part of employee turnover is connected to bad hiring decisions.

SHRM estimates average annual  employee turnover rates to be around 19%. For a 200 employee-sized business, that’s 38 departures every year.  In compensation terms, the real cost of employee turnover can be anywhere from  30% and cost up to 5 times  the position’s annual compensation, depending on the type of role, location, etc.