I am amazed at how many leaders don't know the cost of losing good people. They often only associate administrative costs, recruiting costs, and interviewing time toward the overall impact when a good person leaves.
The challenge is that the true costs are so much more.
We recently calculated the cost of losing "just" one employee in our People-First Leadership Development Program in Denver and the numbers were astounding. They ranged from about $40,000 for administrative positions to hundreds of thousands of dollars for more technical positions such as software developers, IT leaders, and account managers.
The factors most leaders don't calculate, and frankly that don't show-up on a quarterly profit and loss statement, include:
- Lost productivity when a good team member is employed and looking for other work
- The gap when a role is unfilled
- Ramp-up time for a new employee
Now multiply that number by your attrition rate. It might take you by surprise.