When a software engineer leaves your company, it’s easy to focus on the immediate need for a replacement. However, the financial repercussions can be much broader, affecting budgets and project timelines in ways you may not fully appreciate. This article dives deep into the hidden costs of technical talent turnover, urging HR departments to reconsider how they calculate the true costs involved.
Key Points
- Technical turnover rates are 13% higher than other professions, with costs associated with losing a developer often between 150% to 300% of their salary.
- Visible expenses: recruitment fees can reach 30% of the annual salary, plus onboarding costs like equipment and training.
- Hidden costs include knowledge loss, project delays, team disruption, and significant opportunity costs.
- Calculating turnover costs accurately requires factoring in both direct and indirect expenses for a comprehensive view.
- Effective retention strategies can improve retention rates by 15% to 25%, yielding significant savings on turnover costs.
Why should I read this?
If you’re in HR or management and want to keep your technical team intact, this article is a must-read. It lays out the hefty price tag that comes with high turnover and shows how smart retention strategies can save your organisation a small fortune while also keeping your teams happy and productive. Don’t miss out on the insights that can transform how you approach talent management!