Indirect Costs of Employee Turnover:

• Customers of departed employee lose personal relationship with company.
• Replacement workers of departed employee will be inefficient at first.
  
• Teams lose productivity doing work of departed employee and training replacement.
  
• Dissatisfied employees may neglect or pass on knowledge before departure.
  
• Increased workload demands cause lost productivity and resentment.
  
• Training replacement workers drains productivity from managers and co-workers.
  
• Current project disruption due to loss of key employee, resulting in wasted capital.
  
• Loss of skills/experience, a source of competitive advantage, may go to competitors.
  
• High turnover rates lower morale, cause insecurity, and can stimulate additional turnover.
  
• Reputation of company is diminished, and ability to hire is reduced.
  
• Risk of active or passive customer sabotage by disgruntled employee.
  
• Customer dissatisfaction may result in customer defection
  
• Defecting employees may recruit valuable existing employees.

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