How much does it cost for a business to replace an employee?

The Center for American Progress conducted a review of 30 academic studies that approximated the cost of replacing a worker who left the job due to firing or quitting. Their review concluded that the cost of replacing a worker averages around 10% to 30% of the worker’s annual salary.

In other words, not having to replace a worker saves a business this much per worker– with the results for individual professions listed below:

Profession Cost of hiring a new employee
Cashier $2,286 – $4,313
Hourly store personnel $3,372 – $4,291
Hotel front-office $5,965 – $5,688
Loss-prevention (security) associate $3,026
Line cook $2,077
Administration, sales, catering $7,658
Gift-shop clerk $3,383
Administrative assistants or managers $10,031
Registered nurses $23,487
Home care aide $3,362
School teacher $4,366 – $17,872
Call-center employees $21,551


To see the full review from the Center for American Progress, click here.

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