The actual cost of replacing one employee
I want to share a real-life example from one of my clients about what it really costs to replace one employee.
Background.
One of the sales guys was planning a move to another city and said he will be leaving in 2 months.
We were lucky to hire a new person after a month and had a 1-month overlap where the old person was teaching the new person how to do the work.
3 months later we calculated the costs associated with the change that the company incurred.
Below you see the exact numbers.
![](https://blog.dmitriev.com/wp-content/uploads/2022/07/Screenshot-2022-07-29-at-16.21.48.png)
Conclusions.
Replacing employees is costly. Depending on the role the consequences can be really huge.
In this case, we have registered:
- a 27% reduction in productivity for the leaving employee while remaining in his position
- a 36% loss of sales volume during the first 3 months of transition
- a total loss of 4 times the employee’s yearly salary
Solution.
With the same client, we integrated a new software for managing employee lifecycle and were able to reduce these costs more than 10 times.
DM me or put “demo” in the comments if you want a demo.