Turnover's Terrible Toll.

• Author: Marshall, Jeffrey
• Position: Brief Article

Employee turnover is more than just an administrative headache: It can take a serious bite out of company earnings and stock valuations, says recent research from Sibson & Co., an employee benefits consultant.

Sibson found that turnover is a particularly serious problem in four industries -- specialty retail, high tech, call center services and fast food. On average, turnover and subsequent replacement costs have reduced earnings and stock prices in these industries by 38%. The worst-hit industry, fast food, has 123% annual turnover, more than eight times the U.S. corporate average of 15%.

Affected companies have yet to declare war on turnover, argues Sibson...