Economics of Hiring

The Real Cost of Employee Turnover Now

HR Morning

What This Article Covers

U.S. businesses spent $900 billion replacing workers in 2023. A 100-person company with 10% turnover can expect $700,000 in annual costs. 42% of that turnover is preventable, according to Gallup.

PersonaScore's Take

If 42% of turnover is preventable, that's $294,000 a year that a 100-person company is choosing to waste. The question isn't whether you can afford better hiring tools — it's whether you can afford not to have them.

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.

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