Employee turnover is expensive, but just how expensive is it?
Conservative labor estimates suggest that turnover among hourly workers is equal to 100 to 150 percent of that person’s salary. That figure climbs to 200 to 250 percent for management level positions.
In a recent Michigan State University Extension post, Stan Moore puts pencil to paper to show just how much this can cost dairy producers.
In his example, an employee is making $10 to $12 per hour, so the annual wage would be about $25,000 to $30,000. At 150 percent, the cost of turnover for that position is $37,500 to $45,000.
“For a dairy farm with 20 employees and 10 percent turnover per year, the cost would be $75,000 to $90,000 per year,” Moore says.