Agree that people might intuitively underweight turnover costs—I think I was underweighting it before I did some brief research inti the existing soc sci / business literature.
From my post’s abstract:
“Google and Google Scholar searches were conducted to identify research on these costs. One key finding was that direct hiring costs are much smaller than the less visible and measurable effects of turnover on an organisation’s productivity; once these costs are accounted for, turnover costs thousands of dollars per lost employee. Given that turnover rates may be around 20% annually in nonprofits, this can amount to substantial costs. There is also evidence from several meta-analyses that higher turnover is correlated with lower organisational performance, though the overall effects of turnover on performance may be very small.”
Agree that people might intuitively underweight turnover costs—I think I was underweighting it before I did some brief research inti the existing soc sci / business literature.
From my post’s abstract:
“Google and Google Scholar searches were conducted to identify research on these costs. One key finding was that direct hiring costs are much smaller than the less visible and measurable effects of turnover on an organisation’s productivity; once these costs are accounted for, turnover costs thousands of dollars per lost employee. Given that turnover rates may be around 20% annually in nonprofits, this can amount to substantial costs. There is also evidence from several meta-analyses that higher turnover is correlated with lower organisational performance, though the overall effects of turnover on performance may be very small.”
https://www.animaladvocacycareers.org/post/hiring-and-turnover-costs