Subscribe to Entrepreneur for $5
Subscribe

The Hidden Costs of Employee Turnover

By
This story appears in the September 2011 issue of Entrepreneur. Subscribe »

Employee turnover has some obvious costs associated with it, including recruitment, training and salary. However, every time an employee leaves, there are a variety of hidden costs you might not have considered, says Toronto-based human resources consultant Tom Armour. While you might not be writing a check for these costs, here is how turnover can drain dollars:

Slippage. When an employee is missing, the work that isn’t getting done has a price attached to it, Armour says. Lost sales, production delays and lags in new product introductions all cost your company money.

4th of July Subscription Sale - Unlock this subscriber exclusive article and more for 20% off today.

Access all Entrepreneur content with no ads, unlock discounts, and get exclusive advice only available to our subscribers. Plus, our magazine delivered straight to your door.

Get 20% off an annual subscription today. Just use code SAVE20 at checkout.

Entrepreneur Editors' Picks