Hess Associates

The Dollar Cost of Employee Turnover

Employee turnover has a surprisingly high cost, yet very little is being done to contain and/or reduce this expense – something which can significantly increase corporate profits.

• Turnover in general in Canadian corporations is ~ 7%
• Turnover of full time staff in the retail sector is ~ 15%
• Turnover of temp workers in the retail sector can be as high as ~ 65%
• Many positions do not have a clear growth path so little incentive for loyalty
• Many corporations do not provide training and education to enhance performance
• Employee contributions are largely unrecognized and unrewarded
• 1 HR specialist is required in order to hire 100 – 150 new full time people per year
• 3 to 5 training days per person, requiring the trainee and the trainer’s time
• Severance can be several thousand dollars per full time person
• Cost / effort to hire and train temp similar to full time workers minus severance


Turnover xxxxxxxxxxx Number of Employees
Cost in Dollars per Year

Some of Canada’a largest corporations such as Loblaws, the Bay, Sears, Wal-Mart, Canadian tire, Shopper’s Drug Mart, etc. have more than double the number of employees shown above.
Can these onerous costs continue to be ignored?

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