It costs hospitality and leisure recruiter Berkeley Scott around £62,000 every time it loses a member of staff working on the permanent side of the business, the company's chief executive John Rose told the Perriam and Everett Annual Staffing Review.

Speaking after the event, which was held in London earlier this month, Rose told Recruiter that the £62,000 was based on the lost billings of a departed member of staff of around £10,000 a month, for up to three months and the time taken for a replacement to get up to speed, plus the costs of management time, and induction training.

Rose said that the company's growth in net fee income, up 15.4% in the quarter ended September 2007, was to a significant extent due to reducing staff turnover from around 80% before he took over earlier this year, to around 45% now.

"When you stop losing people you will get that £10,000 in billings [after about six months in the post], rather than have to go back to zero [when a new person is taken on]," he said.

Rose said that in a labour market where everyone "has career options", the most important ways to improve staff retention were investing in training and career development, and rewarding staff well.

However, it was also important for staff to enjoy their work and to have fun. "In the war for talent, you have to give them a reason to stay," said Rose.