StrategyDriven Business Politics Impacts Article | Employee Attrition

StrategyDriven Business Politics Impacts Tool | Cost of Employee AttritionThe staggering cost of employee turnover goes largely unrecognized. There is no financial statement line item, no general ledger entry, and no budget explicitly set aside for this expense that can cost evenly modestly sized companies well over a million dollars each year. Yet a significant portion of voluntary attrition is directly related to an abusive work environment created, in part, by excessive business politics. Thus, reduced workplace politics can directly improve the organization’s bottom line.

A company of 250 employees making an average of $43,000 per year experiencing a 20 percent attrition rate spends an estimated $2.15M on employee replacements annually.

Cost of Employee Attrition

Using the StrategyDriven Calculating the Cost of Employee Attrition nomographs and method outlined here, organization leaders can gain a better appreciation for the direct monetary cost associated with employee attrition associated with destructive workplace politics.


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