Nationally, the average annual employee turnover rate for all companies is 12 percent. As business owners, we also know that replacing employees costs money. Do you know how much it will cost you to replace a particular employee?
By knowing the cost of losing and then replacing an employee, you can determine how much you can afford to invest in keeping them. Knowing also helps you analyze whether your investment in keeping your employees is adding to your bottom line.
The University of Wisconsin Extension office now makes it easier to calculate those costs associated with employee turnover. They offer an interactive website calculator that will walk you step-by-step through the numbers. To begin, click here.