1
Gallup research shows that the cost of replacing an employee is typically one-half to two times that personâs salary, depending on seniority and the sophistication of his or her skills
Resignationss among your staff (human capital) is not as cut and dry as salary. A reasonable way to think about the investment in existing human capital is:
Time to get up to speed x (Salary + Overhead) x 50%
Itâs important to think about the domain knowledge lost when a team member resigns along with ramp and recruiting costs2.
1. Cross, R., Pryor, G. & Sylvester, D. How to Succeed Quickly in a New Role. Harvard Business Review (2021).
2. DeMarco, T. Slack: Getting Past Burnout, Busywork, and the Myth of Total Efficiency. (Currency, New York; London, 2002).