Employee Engagement: A Roadmap for Creating Profits, Optimizing Performance, and Increasing Loyalty

Turnover

Turnover also has a significant impact on us personally and on the financials of an organization. According to the Saratoga Institute, the average cost of turnover is one times a person’s annual salary.¹ Now, not all turnover is bad. Sometimes, turnover cannot be helped, as in the case of a move due to changes in a spouse’s career. In other cases, we may feel we made a poor hire and we want the individual to turn over. But in the end, if we are doing all of the right things, we want to limit turnover, or at least influence it. If our goal is to reduce turnover of key people, we must recognize that turnover is an indicator of a number of issues, shown in Figure 6.1.

Figure 6.1, the Turnover Quadrant Model, is a simple way to review ...