Here’s just one glaring example of how paying higher wages/salaries can actually save your organization money!
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Costco
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Avg. Hourly Wage
$17.00
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Turnover Rate
17%
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Turnover Cost (YRLY)
$244M
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2019 Revenue
$43B
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Operating Proft/EMP.
$21,805
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Sam’s Club
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Avg. Hourly Wage
$10.11
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Turnover Rate
44%
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Turnover Cost (YRLY)
$612M
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2019 Revenue
$37B
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Operating Proft/EMP.
$11,615
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If your organization does not pay competitively, it often results in people
leaving, and average costs to replace an employee include:
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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.
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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.
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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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