How much does it cost to replace
the average employee?
Investing in workplace wellness will save you money, not cost you money.
Replacing an employee costs a lot of money. In addition to the obvious costs of hiring, training, and getting new employees up to speed, there are extra costs like lower productivity, loss of knowledge, and a drop in morale among the remaining team.
Research indicates that the average staff turnover rate exceeds 21% and the cost of replacing a single employee can vary between 150% to 400% of their annual salary, depending on level of experience and specialisation.
To put this into perspective, using New Zealand as an example, the average annual salary has reached $70,000. Based on this figure, the estimated cost of replacing a single employee would be approximately $105,000. For larger companies, these numbers add up quickly.
