What's the real cost of turnover? How to calculate employee replacement costs
What This Article Covers
Replacing an employee costs 50% to 400% of their annual salary. 87% of companies underestimate true turnover costs, and 68% of those costs hit in the first 90 days after someone leaves.
PersonaScore's Take
Most companies massively undercount what turnover actually costs. When you add up recruiting, onboarding, lost productivity, and the damage to the team left behind, the ROI of getting the hire right becomes undeniable.
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.