Losing an employee costs on average 33% to 50% of their annual salary
$32,992
Avg. Dealership Loss per Employee
Turnover Expenses
Turnover costs to your dealership can add up quickly. Most dealers are not aware of the expenses associated with losing, recruiting, and re-hiring a employees. Financial statements have no line item for ‘Turnover Expenses,’ so Retentrics decided to help you by putting together a list of the tangible and intangible costs for you.
Top 10 tURNOVER EXPENSES
- Each open position can cost your dealership at least $1,000/day in lost revenue
- Regular turnover can lower your CSI scores which may cost your dealership thousands in factory incentives
- Commissions paid to headhunters' for leadership positions can be exorbitant
- Leadership/management lose valuable time conducting interviews instead of executing income-producing tasks
- There are salary expenses during training periods with no production
- Low morale can impact customer and and relationships thus impacting revenue and productivity
- Testing fees during the selection process - personality tests, background checks, drug tests etc.
- Advertising expenses for new recruits
- Losing talented income-producing employees and replacing them with ineffective workers
- The risk of losing valuable team members through 'poaching' of former leadership/management employees