Turnover Costs refer to the total expenses incurred by an organization when an employee leaves and must be replaced. These costs include recruitment expenses, onboarding and training costs, productivity losses, administrative processing, and potential disruptions in operations. High turnover rates can lead to increased financial strain, reduced efficiency, and knowledge gaps within the workforce, making it crucial for organizations to implement effective retention strategies.

Industries such as manufacturing, retail, logistics, e-commerce, and facility management services (FMS) must carefully manage turnover costs, especially in workforce segments with high attrition rates, such as contract workers, apprentices, and temporary employees. By leveraging data-driven workforce analytics, competitive compensation structures, and employee engagement initiatives, businesses can reduce hiring expenses, improve workforce stability, and enhance long-term operational efficiency. Additionally, implementing structured onboarding programs, career development opportunities, and retention-focused HR policies can significantly lower turnover-related costs and improve overall business performance.