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High Cost of Turnover > High Cost of Turnover - Pg. 2

The Importance of Hiring Right Needless to say, these pitfalls create an unreliable system on which to base important hiring decisions that can have lasting effects on your organization. High Cost of Turnover It is a well-known fact that it is more costly to attract and gain new customers than it is to keep existing customers. The same holds true for recruiting and hiring new employees. It is less expensive to retain employees than it is to hire new ones. Depending on the industry and the position being filled, the hiring process can cost as much as 30 to 100 percent of the new hire's annual salary. In situations where a structured hiring system is absent or an extensive search is required for key positions, it can cost even more. The total cost of employee turnover includes: · · Recruiting expenditures Time to screen and interview candidates multiplied by the number of people involved