Cost of Losing Top Talent
A good boss knows who the top performers on their team are and ensures they are appropriately compensated and rewarded for what they bring into the company. As much as it costs to replace an average employee when they leave, you’re losing much more when you lose top talent.
According to Andria Taylor, chief talent officer at the Talent Agent Group, losing top performers can cost businesses 150 percent of the workers' annual salary. The costs of replacing them can include:
- Lost revenue from unfinished projects
- Opportunity cost of others on the team having to pick up the slack from the empty position
- Human resources costs
- Opportunity costs of senior management taking the time to interview new candidates
- The time it takes for the replacements to match the previous employees' capacity to contribute to the company
To save money, time and resources, make sure you're recognizing the top talent in your company. And find ways to motivate and reward them appropriately.