on employee turnover every year.
According to Bersin by Deloitte research, companies that scored in
the top 20 percent for building a "recognition-rich culture" had
31 percent lower turnover rates.
Employee turnover is so expensive because organizations pay direct exit costs when an employee leaves and incur additional costs to recruit and train new hires. Direct exit costs can include payouts for accrued vacation time and unused sick time, contributions to healthcare coverage, higher unemployment taxes, and severance pay. How organizations choose to mitigate the side effects of turnover, such as decreased productivity, knowledge loss, and lowered morale can also incur incidental costs.