So, what does the damage look like? Tim Sernett, an accounting and finance consultant for SMBs, says the costs vary by state and skill level, but offers this hard, fast measure for skilled employees:
In the context of a key manager, a creative, or for jobs writing code, it’s understandable how the costs can add up.
Think of it this way. “With 148.5 million people in the U.S. workforce, and with 66 percent of workforce saying they are unhappy in their jobs, if 2 percent are moving per month that’s 36-million people a year,” says Keith Hughley, an HR consultant for the finance industry. “Largely that’s due to leadership.”
In either case, the firing decision comes down to weighing positive attributes against the negatives. A brilliant manager that drives away employees with a harsh, overbearing attitude will never contribute enough to justify the turnover costs. That is, unless they own the company. On the other end of the spectrum, the likable hack doesn’t produce the results to justify keeping on board--firing them isn’t fun, but incompetence drives talent away all the same.