Employee turnover costs organization 75% of salaries within first five years

June 06, 2025 | Cumberland County, North Carolina


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Employee turnover costs organization 75% of salaries within first five years
During the Cumberland County FY 2026 Budget Public Hearing held on June 5, 2025, significant discussions emerged regarding employee turnover and its financial implications for the county. The meeting highlighted concerns about the high turnover rate among county employees, particularly those with less than five years of experience.

A representative noted that most employees tend to leave within this timeframe, leading to a turnover cost estimated at around 75% of an employee's salary. This figure reflects the expenses associated with recruiting and training new staff, which can take at least three months. The discussion emphasized that losing employees not only incurs direct costs but also results in the loss of valuable field knowledge and experience, particularly when more seasoned employees depart.

The implications of these findings are critical for Cumberland County as they consider budget allocations for the upcoming fiscal year. Addressing employee retention could lead to significant savings and improved service delivery within the county. The meeting underscored the need for strategic initiatives aimed at enhancing job satisfaction and reducing turnover rates, which could ultimately benefit both the workforce and the community at large.

As the county moves forward, it will be essential to monitor these trends and implement effective retention strategies to mitigate the financial impact of turnover. The discussions from this public hearing will likely inform future budget decisions and workforce planning efforts in Cumberland County.

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Scribe from Workplace AI
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