Costs of Turnover: How to Solve the Biggest Obstacle to Growth in Logistics

Costs of Turnover - Intro

Did you know that the costs of turnover for an employee with a base salary of $60,000 is between $120,000 and $180,000 (2-3x their base) to replace them? (Source: Society for Human Resource Management (SHRM))

When you factor in:

• HR Expenses

• Onboarding and Training

• Lost Productivity

• Potential Revenue Loss

• Institutional Knowledge Leaving Your Company

the "real" costs of employee turnover become apparent!

Costs of Turnover Examples

The cost of turnover can be a massive drain on your 3PL's profits and growth potential. Here are some examples:

Note: To calculate the "estimated minimum cost of turnover" in the examples below, we used SHRM's "2x" multiplier on a salary base.

• Sales Executive doing $2M in Revenue and $200,000 in Margin (10%) is laid off. You were paying them $50,000 in base. It will cost you at least $100,000 to replace them.
• Sales Manager struggles to grow their team's book of revenue and their team stagnates resulting in you laying them off. You were paying them $80,000 in salary and now it will cost at least $160,000 to replace them.
• VP/General Manager making $200,000 now will cost you $400,000 to replace them.

In these three scenarios, Not only do you lose out on revenue and the growth of your team but now add the costs to backfill the position. Things start to get ugly and fast!

If you are curious about how high your firm's hiring costs are, then you'll love Top Talent's new "Hiring Cost Calculator."

Hiring Cost Calculator

Our "Hiring Cost Calculator" is designed with decision-makers in mind. In less than five minutes, you can input a current or prospective job opening and know:

• Estimated Time to Fill (Industry average vs. Specialized Recruiting Firms)
• Average Retention Rates for Recruiting Firms
• Hiring Cost Options (Internal vs. Recruiting Firms)

A link to our calculator can be found here.

The Journey to Profitability

Most companies don't realize the cost savings they can experience by partnering with a specialized recruiting firm like Top Talent.

We collaborate with leadership teams to develop competitive compensation and benefits packages. Our team of hiring experts can show you "blind spots" that prevent you from retaining top talent within Logistics. We are more than just people who source candidates for open roles. We are expert matchmakers with consultative mindsets, never forcing a square peg into a round hole.

Yes, using a recruiting firm results in a fee for each placement, but as our "Hiring Cost Calculator" will show, the costs associated with our partnership pale in comparison to the exorbitant expenses incurred by high employee turnover rates.

Employee turnover costs companies millions that could be saved by partnering with a specialized recruitment firm like Top Talent. Use our "Hiring Cost Calculator" to reveal your savings today.

About Top Talent, LLC

Top Talent, LLC, headquartered in Fishers, Indiana, is a premier talent acquisition firm established in 2014. Our company specializes in identifying and placing professional talent across Logistics and Supply Chain, catering to the unique needs of each client.