Many employers make the mistake of basing cost of turnover analysis on hiring and salary costs alone, however the bottom line impact on a business is a lot more far reaching.

Advertising, equipping and administration, time taken for screening, interviews and orientation/training, legal costs and severance payments, lost productivity, interrupted client relationships, negative impact of team morale and disruptions to core activity must be factored in.

Whilst these costs will naturally vary between organisations and positions, the figure of three times the annual salary is often used as a rule of thumb and indicates just how seriously incorrect hiring can affect an organisation’s profitability.