Hiring Process

• A study published in "Entrepreneur" magazine in 2001 looked at the effects of hotel employee turnover and discovered the high price of recruiting, interviewing and hiring new workers, in addition to lost productivity (see Resources).
  
  

Actual Cost

• The U.S. Department of Labor estimates that it costs about 33 percent of a new employee's salary to replace the worker who left. This means major companies can spend millions of dollars a year on turnover costs.
  
  

Lack of Staff

• High turnover rates can create a lack of staff to complete essential daily functions of a company. This can result in overworked, frustrated employees and dissatisfied customers.
  
  

Loss of Productivity

• New employees take some time to get up to speed, particularly in complex jobs.
  
  

Customer Dissatisfaction

• For service-oriented careers such as account management and customer service, high turnover can lead to customer dissatisfaction. Newer representatives lack expertise and knowledge, and customers have no way to build a relationship with one particular service representative.