The real cost of losing a star performer

Natasha BoddyWork & Careers reporter

Apr 15, 2021 – 8.00am

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Key Statistics

$50,000Cost of hiring. Includes advertising open positions, screening applications and interviewing candidates.
$150,000Cost of onboarding. On average, it takes six to nine months of an employee’s salary to locate, train and onboard a replacement.
$200,000Cost of lost productivity. New hires simply aren’t as productive as the person they’re replacing and may take a year or two to get to that level.
$400,000Engagement. Assuming just one other employee of a similar level and pay bracket considers leaving.

If you have ever lost a star employee, you might appreciate the void it can leave. But new research shows just how much it can affect the bottom line.

Replacing high-potential talent can cost a business two to three times the outgoing worker’s annual salary, analysis from The Dream Collective, a diversity, equity and inclusion consultancy, shows.