How much does nursing turnover cost? The cost of turnover is 1.5 times the base salary for exempt employees. The average hospital is estimated to lose about $300,000 per year for each percentage increase in annual nurse turnover.
Consider a hospital with 2,000 employees of whom 35% (700) are nurses. Average annual base salary is $67,000 and annual turnover is 20%. Assuming turnover cost of 1.5x average annual base salary, reducing turnover by a mere 5% would result in $3,517,500 annual savings.
Just from those stats, you can see that turnover is a costly problem and decreasing it by small percentages can have huge impacts.
This Tip Sheet discusses the high cost of turnover and three ways your organization can reduce it, through a better healthcare hiring process.