Is high turnover just the cost of doing business?
Think about it.
With a bit of looking around, the IT industry is experiencing around a 13% turnover rate. (It could be a bit more or less depending on where you look.)
This is the average, normal, status-quo.
Are you happy with average?
I did a little math.
Generally, it costs half of an employee’s salary to replace them. This is taking into consideration the drag on productivity, loss of tribal knowledge, cost of recruiting and hiring, etc..
Developers are relatively expensive assets (not the most cuddly description, I know). Salaries range from $80 to $120K.
Let’s be conservative and stick with the low side $80K.
If you employ 100 developers and experience the average 13% turnover, you’re loosing $520,000 per year.
(100 x .13 x 40,000)
Let me ask again, are you okay with the average?
Is that amount of savings worth chasing?
Reply with your thoughts.