Difficult people often cause turn-over, either because the difficult person decides to leave, is terminated, or causes the departure of someone else. According to one study on the effects of the U.S. Family Medical Leave Act, "Turn-over costs for a manager average 150 percent of salary, including tangible costs of hiring new workers and relocation, and intangible costs such as the new worker's inefficiency and lost productivity while the job is vacant." When you do the math using this formula, here's how much it costs to replace employees at the following salary levels:
a. Existing employee's salary: $ 35,000
b. Cost of replacement: $ 52,500
a. Existing employee's salary: $ 50,000
b. Cost of replacement: $ 75,000
a. Existing employee's salary: $ 65,000
b. Cost of replacement: $ 97,000
a. Existing employee's salary: $ 75,000
b. Cost of replacement: $ 112,000
SOURCE:
"How Much Does Employee Turn-over Really Cost?" by Will Helmlinger, Inc. Magazine (January 2006).