What is Newman’s Rule of Three?
A rule of thumb for what turnover really costs: losing a good employee runs to roughly three times their annual salary, once you add the search, the ramp-up, and the work that stalls while the seat sits empty. It’s a way to make an invisible cost concrete before you shrug off a resignation. The note breaks down where the figure comes from — and how firm it is.
The evidence behind the Rule of Three ›