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The Financial Impact Of Employee Turnover
Fifty-eight percent of organizations claim that they have troubles retaining employees. Estimates for replacing an employee vary from 30% to 200% of an employee’s annual salary depending upon their level with the company. Organizations with high turnover are losing future leaders and innovators. Indirect costs involved in replacing employees include the recruiting, hiring, and training of the departing employees’ replacements. Organizations do not seem to think twice about securing and insuring easily replaceable physical assets, but they adopt a different attitude concerning their knowledge worker’s real source of value.
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