While some level of employee turnover is expected and inevitable, excessive churn rates inflict financial consequences and operational disruptions most companies aim to avoid. Just how expensive is losing talent unexpectedly?  


Quantifying Turnover Costs  

The average cost of replacing an hourly employee can be up to $4,500. The cost of replacing an individual employee with a salary can range from 0.5 to 2 times their annual income. Expensive turnover can be in part due to:  


Lost Productivity: Gaps during vacancy periods equate to less output. Teams operate in a diminished capacity until new talent is embedded.  

Recruiting Expenditures: The cost of posting openings, advertising, onboarding resources, and utilizing hiring tools add up.  

Onboarding & Training: Integrating and upskilling replacement hires is time-intensive for managers. Ramping up to full productivity takes months.  

Continuity Impacts: Workflows experience disruptions when tenured staffers exit and replacements learn systems. Client and vendor relationships also suffer.  


Additionally, there are less quantifiable turnover costs that are still critical to any organization, like losing insider experience, relationship equity built with external partners, and sunk expenses into developing the exited employee’s capabilities.  


Cultivating an Environment Where People Stay 

With the significant impact of turnover, purposefully nurturing talent retention reaps rewards for companies by: 


Boosted Engagement: Employees who feel valued, see alignment in values, and view growth trajectory potential tend to stick around long-term.  

Reduced Risk: Retaining top performers means fewer perpetual setbacks from talent and knowledge drain when colleagues quit.  

Enhanced Operations: Keeping tenured staffers minimizes reinventing wheels and preserves efficiencies from institutional know-how.  


As an HR outsourcing company, AlphaStaff helps clients boost retention via true, tailored, and flexible solutions, supporting the entire employee lifecycle and keeping your people motivated and engaged. Let’s connect to craft targeted strategies that compel talent to stay!