Potential Savings For Reducing Employee Turnover
The following table shows the potential savings per year for select companies if they were to reduce their employee turnover by just 1%.
These figures are based on public data from Fortune Magazine's 100 Best Companies to work for January 2001. The estimated turnover cost
used below is based on 20% of the most common entry level salary of each company. This is a very conservative estimate.
In reality, these costs can be much higher. HR professionals estimate this cost between 50% and 125% of an employee's
salary. The recruiting commission alone can range between 20-30% of salary. Realized savings would thus tend to be significantly higher than illustrated below.
Note that for just a one percent decrease in turnover, every company could realize a one year savings between 200 thousand and 2 million dollars.
|Company¹||Number of Employees (US)||Turnover Rate||Estimated Turnover Cost per employee²||Reducing Turnover 1% Savings / year|
|Charles Schwab||18,863||12%||$8329||$1,512,000 |
|MBNA America Bank||16,960||15%||$4800||$1,000,000 |
|Average US Company||10,000||15.6%||$5000||$500,000 |
|How much can you save? Calculate Your Savings Now|
|1. Based on Public Data from Fortune Magazine's 100 Best Companies to work for January 2001.|
|2. Estimated Turnover Costs calculated at 20% of most common entry level salary as provided in note 1.|