Annual Employee Turnover Savings with HR Software
Employee turnover is costly—not just in terms of recruiting, but also the training, ramp-up time, and the dip in productivity while you search for a replacement. It's a hidden cost that adds up quickly and takes a toll on your business. But with an HRMS, you can reduce turnover rates and save a significant amount by keeping employees engaged and improving their overall experience at your company.
The Cost of Turnover
The financial hit of turnover is often more than companies realize. When an employee leaves, the direct costs include recruitment ads, agency fees, and the time HR and managers spend reviewing resumes, conducting interviews, and onboarding new hires. Then, there's the indirect cost of lost knowledge, team disruption, and the time it takes for a new hire to become fully productive.
How an HRMS Can Help
An HRMS supports employee retention by automating feedback systems, improving communication, and offering employees clear development paths. It enables better performance management, more frequent check-ins, and a more transparent process, all of which help keep your employees engaged and loyal.
By reducing turnover, you save on all those hidden costs—and the value of an HRMS becomes clear.
Cost-Saving Formula
Cost to replace an employee: ~33% of their annual salary
HRMS reduction in turnover rate: 1 employees/year
Example:
- Average salary with 20% overhead: $75,000/year
- Reduction in turnover rate by 1 employee/year:
$75,000 × 33% × 1 = $24,750 saved annually
When turnover drops, the savings aren’t just immediate—they continue to grow as your company avoids the cycle of high recruitment and training costs.
Investing in Retention Pays Off
By using an HRMS to streamline communication, performance tracking, and employee engagement, you invest in your team’s retention and stability. And the numbers speak for themselves—reduce turnover and your business can save tens of thousands of dollars annually.
What is an HRMS?
A Human Resources Management System (HRMS), such as Collage HR, is like upgrading from a flip phone to a smartphone—but for your HR. It's affordable online HR software that acts as your all-in-one digital filing cabinet and HR assistant.
It replaces your document-based HR (paperwork, scattered files, and email threads) with a secure, cloud-based system. Accessible from anywhere, it saves time, reduces errors, and significantly cuts administrative costs.
An HRMS is your all-in-one
digital filing cabinet & HR assistant
An HRMS eliminates repetitive tasks
that slow you and your workforce down.
Find out more about HRMS automated tasks
How much can I save with HR software?
Take a look at how much you can save by implementing an HRMS. It’s an eye-opener that makes the decision crystal clear.
An HRMS doesn’t just pay for itself—
it delivers even greater long-term value.
Find out more about features & automation
Next Steps
HR doesn’t have to be a time-sucking black hole. HR Sync makes the transition to an HRMS simpler, more straightforward, and tailored to your business.
Ready to move your document-based HR online?
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