#12b: The high cost of high employee turnover.

High employee turnover is one of the greatest threats to the long-term success of business. Consider, first, the monetary cost of an employee leaving. Around 20% of all people-related expenses are attributable to turnover: hiring cost, a new employee's ramp-up time, and the time spent by the replacement employee's peers helping them to be productive.

Laying off employees to reduce expenses does so at cost of the company's investment in those employees; by some estimates this is over $200,000 for an experienced worker. You cannot lay off employees without losing their knowledge and expertise that is uniquely valuable to your business.

Related: 12, 12b1

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