Turnover costs

Canadian HR Reporter|Last Updated: 11/27/2000

New research out of the United States claims that in four high turnover industries — speciality retail, call centre services, high tech and fast food — employee replacement costs have reduced earnings and stock prices by an average of 38 per cent.

Rates range from 31 per cent annually for call centres to 123 per cent in fast food.

Sibson & Company, conductors of the study, estimate turnover is costing those industries more than US$75 billion annually just to replace the 6.5 million people who quit every year.