Calculating The Cost of Employee Turnover
What This Article Covers
Gallup estimates turnover costs U.S. businesses $1 trillion annually. Organizations with high engagement see 59% lower turnover and 23% higher profitability — and engagement starts with hiring the right people.
PersonaScore's Take
A trillion dollars. That's the annual price tag of getting hiring wrong in America. The companies with 59% less turnover aren't lucky — they're intentional about hiring people who fit the role, the team, and the culture.
Why This Matters
The economics of hiring are brutal when you get it wrong. A single bad hire can cost $17,000 to $240,000 depending on the role, and nearly 9 out of 10 hiring failures come down to behavioral fit rather than technical skills. The ROI calculation for structured assessments is straightforward: even preventing one bad hire per year pays for the investment many times over.