Are You Ready to Risk over $24 Milllion?

Businesses talk about risk in many different terms.  I haven’t heard much if any talk about risk in why they lose talent, high turnover, low employee engagement.  The risk in these for a medium size company could be in the $100 of millions of dollars and for large size company it could be in the billions of dollars.  Find out how much risk you’re taking complete this worksheet.  Then contact me, you will need to.  tlovingsimplified  

Cost of Losing Talent

Intangibles lost: experience, training, leadership, morale, productivity, diversity, mentorship, skills, talents, expertise, customer satisfaction, quality, project management, team leadership, create/hire new talent, conflict.

Employees looking for new employment opportunities

Between 70% and 85%

# of employees in organization x .86 = ________ # of employees

Possible lowest cost of replacing talent

70% to 200% of the talent’s salary


Cost of replacing talent up to 3 times salary

Average organization salary _______
# of talented employees lost last year ________
Avg salary x 3 x # of employees = ________


Attrition/High Turnover

Intangibles: productivity, organization reputation, chaos, low morale, conflict, customer service, diversity, leadership, workplace culture, team dysfunction, additional work, leadership challenges, low morale, effective leadership, customer satisfaction, innovation.

Annual turnover cost can be up 150% of annual salary

Ex  Average salary $50K annually
150% cost of turnover per employee – mid-sized organization
1K employees – 10% annual turnover rate
$7.5M annually


Employee Engagement

Intangibles: Customer satisfaction, communications, retention, productivity, enthusiasm, teamwork, diversity, low morale, leadership effectiveness, conflict, customer service, innovation, absenteeism, workplace culture, job satisfaction, loyalty, self-motivation, dedication.

 Cost to an employer, per year, due to decreased productivity by disengaged employee

  • $2,400 per employee per year – 10,000 employees = 24,000,000 decreased productivity
  • 60,000 employees = 144,000,000 decreased productivity

Amount of unrealized productivity per year $M

Productivity based on engagement

Actively engaged  31.5
Disengaged  51.0%
Actively disengaged 17.5%

Calculate overall productivity based on percentages-

.315 engagement x.98 productivity = 30.87%
.510 engagement x .40 productivity = 20.4%
.175 engagement x .20 productivity = 3.5%

30.87 + 20.4 + 3.5 = 54.77% productivity

$45M payroll x .5477 = 24,646,500 lost productivity