Employee turnover is expensive and is estimated at 150% of the annual salary associated with that position. It takes an average of 8 months for a new employee to become fully productive in a role. Another sobering statistic: when an employee leaves an organization, 70% of his knowledge walks out the door with him or her. Besides these costs, there are other less measurable ones. An organization’s brand suffers when an employee leaves, particularly due to social media channels and employer review outlets, such as Glassdoor.com, which give unsatisfied employees a platform to share their views.

A poor retention rate likewise will have a chilling effect on recruitment and on employee morale for those who remain with the organization. A steady stream of offboarded employees gives everyone a feeling of “short timer’s syndrome” and can encourage others to think about jumping ship.