10/01/2019

Employee Turnover Has High Costs for Small Businesses

Research shows turnover rates would decline if minimum wage increased

For the more than 6 million small businesses nationwide, employee turnover can be a brutal expense.

In fact, nearly 1 in 3 (32 percent) employees will no longer be at their current employer one year from now. For a team of 20, where each person earns $50,000, that turnover rate can cost a business more than $100,000 a year. That's why reducing turnover is essential for keeping costs down as it relates to hiring, onboarding and training employees.

In a recent analysis of why employees leave small businesses, the research team at payroll, HR and benefits company Gusto found a strong correlation between hourly wage thresholds and the rate of turnover.

Please select this link to read the complete article from CNBC.