What is employee turnover?
It is when another employee replaces one employee.
You can calculate your turnover by taking the annual average number of employees and divide it by the number of departures in a year, then multiplying that number by 100.
Acceptable turnover is 10% or less.
But the average turnover rate in America is 45%.
About 33% of an employee's salary is the cost of replacing an employee.
For highly skilled or long-term employees, this can be as much as 200% of their salary.
So an employee that earns $50,000 a year will cost about $16,500 to replace.
The cost includes training and onboarding, the cost of development, and the cost of having any vacancies within the organization.