The True Cost of 'Brain Drain'

In this difficult financial climate, organisations of all sizes are looking to keep costs as low as possible, including the significant expense of replacing members of staff who choose to leave. The key to managing costs is understanding them, and this report aims to give employers a clearer picture of the financial implications of staff turnover in five key business sectors.

There are more elements to the cost of staff turnover than one might initially anticipate. Firstly, organisations face logistical costs such as advertising the vacant role and hiring temporary staff to cover any gaps. On top of this, businesses will also encounter a period of reduced productivity while new staff take time to reach their peak effectiveness in their new job. It’s easy to underestimate how long it can take to get staff up to their optimum productivity level. In fact we believe that even in this report employers have been optimistic in their estimation of how long this process takes, especially for higher earners in leadership roles. I have found that when moving to a new employer it takes over 11 months to reach peak effectiveness, given the learning curves at more senior levels.

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