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What is the Cost of Turnover in a Customer Service Department?

Thanks to our new calculator and extensive market research, we can show you how to calculate employee turnover costs.

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Total cost of your bad hire:


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40% is often considered to be the average annual turnover in customer service departments. No wonder customer service managers are stressed over cutting other costs to offset high - and frequent - staffing costs.

So, on average, what is the cost of a bad hire that swiftly exits their job? Our employee turnover calculator provides an accurate answer - and shows the magnitude of this issue. Simply fill in the blanks to the best of your knowledge, and crunch the numbers:

Avoiding the high cost of turnover

Customer service departments have particularly high turnover, so it's imperative to do everything possible to avoid the associated high costs by hiring the best-fitting workforce. This may require you to carefully source candidates from primary and secondary channels, conduct thorough in-person interviews, and pay close attention to previous experience.

And when you consider the following stats from RightNow's Customer Experience Impact Report, you see just how valuable - and often taken for granted - your staff can be:

  • 86% of consumers will pay up to 25% more for a better customer experience.
  • 89% do business with a competitor following a poor customer service experience.

It is not only important to make the right hire, but to create a positive culture, provide training and reward your team. That way, you're more likely to retain your employees and clients!