Finding and retaining the best talent is critical for a business to thrive in today’s economy. According to data gathered by CompData Surveys the rate of voluntary and total employee turnover has incrementally increased by 1% over the last 4 years. In 2016, the total turnover rate for all industries was 17.8%. This growing trend, paired with the rising cost of losing valuable employees is enough to keep business owners up at night. To better understand the impact of turnover, let’s dive into an exercise to identify direct and indirect costs of losing a valuable employee from your internal accounting staff.
Assume you are paying an accountant $60,000 annually. This is clearly above the bookkeeping rate, but well below a CFO cost. For this exercise we will not consider the benefits, employer payroll taxes, or other special arrangements. Let’s also assume that this individual is primarily responsible for your accounting function and that you do not have an HR department within the organization.