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The High Cost of Employee Turnover
 
by Chris Specht 
 
According to research compiled by the Center for American Progress, high employee 
turnover results in significant costs to businesses across most industries.  It costs businesses 
about 20% of an employee’s annual salary to find a replacement and that percentage rises 
to more than 200% of annual salary when replacing a highly trained executive. 
 
Of course there are hidden costs of employee turnover as well.  Most notably for technical staffing is the reduced 
productivity from the loss of a key engineer and the reduced productivity of the remaining technical staff who are now 
stretched to cover the current projects of the whole team. 
 
The hidden costs can be exacerbated by a both a lengthy engineering recruitment process and the time it takes to get a 
new engineer up to speed on company processes, drives and folders, and project specifics.  Using a specialized 
engineering staffing agency can shortcut the time and overall costs that inevitably squeeze most organizations as they 
find a qualified and available engineer. 
 
To curb the high cost of employee turnover, some companies like Facebook are going to extremes to attract and retain 
highly qualified software engineers.  On top of the shops, salons, dry cleaners, free lattes, ice cream, employee game 
days, and a giant outdoor movie theater; Facebook is adding luxury apartments that are just a bike ride from its Menlo 
Park campus. 
 
Most companies cannot compete with these over‐the‐top perks and fortunately they do not have to.  The study above 
suggests that employers can improve retention rates of their technical staffing by offering flexible work schedules and 
work‐from‐home options depending on the nature of their work.  Another key incentive is to provide side project 
autonomy and cross‐functional collaborations that build company culture. 
 
How does your company retain key human resources?  Write to me at:  chris@expectllc.com 
 
Expect Engineering Solutions is a specialty staffing and recruiting firm located in Denver Colorado with the primary 
mission of connecting great people to great companies.  Unlike other headhunters, recruiters and staffing agencies, we 
leverage direct engineering and industry experience to provide a responsive and knowledgeable service experience. 
 
We specialize in the placement of technical talent at all levels: 





Mechanical Engineers, Designers, Drafters 
Software Engineers, Software Developers, QA Test, UX/UI 
Electrical Engineers, Technicians, PE 
Civil / Structural Engineers, PE 
 

                                             

                        Expect LLC | chris@expectllc.com | 303‐946‐3436 
                                                                                                                   BLOG POST



Network / System Administrators, DBA 
And all things tech 

 

Seeking Engineering resumes?  We have them! 
www.expectllc.com 
www.linkedin.com/in/expectdenver 
 
 
 
 

 

                                             

                        Expect LLC | chris@expectllc.com | 303‐946‐3436 

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The High Cost of Employee Turnover