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Paying Employees Too Little Will Cost Too Much [infographic]

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This entry was posted in Business Clients, Infographics by .
Here’s just one glaring example of how paying higher wages/salaries can actually save your organization money!
Costco Avg. Hourly Wage
$17.00
Turnover Rate
17%
Turnover Cost (YRLY)
$244M
2019 Revenue
$43B
Operating Proft/EMP.
$21,805
Sam’s Club Avg. Hourly Wage
$10.11
Turnover Rate
44%
Turnover Cost (YRLY)
$612M
2019 Revenue
$37B
Operating Proft/EMP.
$11,615
If your organization does not pay competitively, it often results in people
leaving, and average costs to replace an employee include:
16% of annual salary for highturnover, low-paying jobs (earning under $30,000 a year). For example, the cost to replace a $10/hour retail employee would be $3,328.
20% of annual salary for midrange positions (earning $30,000 to $50,000 a year). For example, the cost to replace a manager making $40k would be $8,000.
213% of annual salary for highly educated executive positions. For example, the cost to replace a $100k CEO is $213,000.

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