Reduced turnover, in turn, improved
store profitability in two ways:
1. Through reduced turnover costs (costs of separating
exiting employees and finding and
hiring new employees). The organization estimated
turnover costs at approximately
10 percent of a store employee’s annual
pay. This is a fairly typical, although conservative,
figure for jobs of this nature.
Some organizations estimate higher
turnover costs for jobs of this kind, and
most organizations estimate much higher
costs of turnover for professional and
managerial jobs (in some cases a multiple
of annual pay).
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