BUSINESS LEADERSHIP ACADEMY

What's Employee Turnover Really Costing Your Business?

Replacing good employees costs more than hiring someone new. Estimate the financial impact in less than a minute using published Gallup benchmarks. No email is required to see your estimate.

1. Which turnover number do you know?

I know our annual employee turnover percentage.I know how many employees left in the past 12 months.

Annual turnover rate (%)Rates above 100% are possible.

Average employees during the yearUse average staffing, not just today's count.

2. What was the approximate average annual salary of those employees?Annual salary ($)

3. Which type of employee are you replacing?

Choose the category that best describes the employees included in your turnover and salary figures.

Frontline / Service Employees
Estimated cost to replace one: 40% of annual salary.Example: A $40,000 employee may cost about $16,000 to replace.Skilled / Technical Professionals
Estimated cost to replace one: 80% of annual salary.Example: A $75,000 employee may cost about $60,000 to replace.Managers / Leaders
Estimated cost to replace one: 200% of annual salary.Example: A $100,000 manager may cost about $200,000 to replace.

Why does it cost this much to replace someone?

Costs can include job advertising, recruiting and interviewing, management time, screening, onboarding, training, and reduced productivity while a new employee gets up to speed. Some employers also incur overtime or overlapping payroll during the transition.

Gallup's role-based percentages are broad total replacement-cost estimates, not separate fees. We do not add these costs a second time. Read Gallup's employee turnover research.

Important: Use a turnover figure for the same employee category as the salary you enter. If your figures cover a mixture of job types, calculate each category separately.

Research benchmark: Gallup, “42% of Employee Turnover Is Preventable but Often Ignored” (originally published 2024). Cost estimates vary widely by job and organization. Calculations run in your browser. Nothing is stored or sent unless you choose to request your free report. Research figures are broad estimates, not individual-company measurements.

What's Employee Turnover Really Costing Your Business?

Why does it cost this much to replace someone?

How did we calculate this?

What if you retained one more good employee?