How Does Losing an Employee Impact Your Profit Margins?


Are you a business owner worried about losing your most valuable employees and how that will impact your profit margins? Stop worrying when you sign up for the GOALL Program! With the GOALL Agency, you can retain your employees for longer, avoid the headaches of hiring, and provide benefits that employees really want.


Losing an employee is hard on any business because it does impact your profit margins. If it’s a key employee, they could leave with a lot of your information, but let’s just use an example here of just a regular employee. $30,000, you lose them. Now you have to advertise, interview, and then take the next three to six months using your time or your other employees’ time to get them going.

Well, it’s gonna cost you about $15,000. If you run a 20% profit margin, that means you have to sell $75,000 worth of your services to make up for that 15%. Now imagine losing five employees!

That’s now $75,000 worth of costs and now you have to sell $375,000 worth of your services based at a 20% profit margin. Here’s where it really gets scary. If you only have a 10% profit margin, it’s the numbers I just gave you double.