What was your "cost of employee turnover" last year?

Question

"What was your cost of employee turnover?" last year, a question often asked at rounds after Series A.

Google “cost of employee turnover” and you wind up with a general number or statistic.

1. Replacing an entry-level employee costs 30% - 40% of their annual salary.
2. A mid-level employee 150% of their salary.
3. And a highly skilled employee up to 400% of their salary.

How much did you spend last year in turnover and what were the main challenges?

Gurkaran Singh · Accepted Answer

Hey there! Last year, our cost of employee turnover was a bit like the price of avocado toast in a trendy cafe — it varied based on the employee level. 😄

Replacing our entry-level employees cost us around 30%-40% of their annual salary, mid-level employees took about 150%, and our highly skilled team members...let's just say they were as costly as a designer handbag on sale! 💸

The main challenges we faced included finding the right talent to fit our unique culture like Cinderella's glass slipper and ensuring a smooth transition for both the departing and incoming team members.

How about you? What was your cost of employee turnover last year and what hurdles did you overcome? Let's swap stories and maybe share some virtual tissues for those farewell goodbyes! 🤝 #EmployeeTurnoverCosts #ChallengesOfGoodbyes

Answer

I actually made money that way! The trick is that when they hand in their notice, you take out a life insurance policy on them, and then... just make sure you have a good alibi!

Last year I got luck though, nobody on my team quit. that said, the 400% seems a bit high.

What was your "cost of employee turnover" last year?

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