The Cost of Replacing Employees

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The Cost of Replacing Employees

WHAT IS THE COST OF REPLACING AN EMPLOYEE? Research by the Society for Human Resource Management indicates that replacement costs average from 50% to 60% of salary. Total overall costs including reduced productivity during an employee’s first 6 to 9 months increase that cost anywhere from 90% to 200% of salary depending on how specialized that employee is.

With average employee retention dropping from 9 years down to 3 years over the past decade, what is your plan to stop the bleeding?


Number of employees 150 x Average salary $60,000 x 3-year attrition 10% Replacement costs of $450,000 – $540,000

Replacement + Productivity costs of $810,000 – $1,800,000

WHY DOES IT HAPPEN? Research shows that a lack of employee engagement is a main factor driving the mass exodus of employees right now.

HOW DO I FIX IT? One of the easiest ways to address this very costly issue is to:

  • Develop a reasonable employee training program
  • Customize the training plan and the course curriculums to match what you actually need

Knowledgeable employees take action and get involved. They become engaged.

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Since 2009 Borderless Learning has helped over 22,000 students from more than 2,700 companies.  We have worked with small, medium and large companies, all the way up to 9 out of the current Fortune top 10.  As a WOSB we have helped companies and the US federal government reach their diversity supplier goals.

We can help you too.


Email for a risk calculation worksheet and to start building your training plan

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Henderson, NV 89052

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Rev. Dec 5, 2017