Cost Of Turnover Calculator

Instructions: Fill in boxes in rows A and B, click on Calculate button to fill in box in row C, etc. Do NOT use commas as separators in numbers.

A.	Number of employees
B.	Average annual salary (including benefits) of employees	$
C.	Total annual payroll (including benefits) of employee population = (A x B)	$
D.	Number of employees voluntarily leaving the company annually
E.	Annual turnover rate = (D ÷ A)		%
F.	Cost to replace an employee as a percentage of salary *		%
G.	Bottom line annual impact of voluntary turnover = (F x D x B)	$
H.	Cost per day of voluntary turnover = (G ÷ 250)	$

ROI

How much is turnover costing your organization? Use the second part of the calculator to estimate the ROI for addressing the problem.

I.	Retention goal: targeted reduction in employee turnover rate		%
J.	Turnover rate if retention goal is achieved = [E x (1 - I)]		%
K.	Annual dollar savings in turnover cost if retention goal is achieved = (I x G)	$
L.	Annual dollars invested to achieve retention goal	$
M.	ROI of investing in reducing turnover = [(K ÷ L) X 100]		%

How Much Is Turnover Costing You?

While the calculation generated above may be insightful, it only represents a fraction of the true costs of turnover. Following are more costs to consider:

Exit costs
Recruiting costs
Employment costs
Onboarding costs
Training costs
Compensation while training
Los productivity
Quality problems
Customer dissatisfaction
Loss of expertise/knowledge
Management time for turnover
Temporary replacement costs

After accounting for all of these costs, the cost to replace a lost employee can be as high as two to three times that employee's salary. Clearly, losing talent your organization was fortunate enough to recruit in the first place is a serious setback. To stay competitive, talent retention initiatives must be an integral part of your business strategy.

How We Help

Spending time and money on recruiting and hiring is pointless if you do not have a strategy in place for retaining the people you hire to begin with. Our Talent First Retention services enable businesses to conveniently outsource ownership of the talent retention process. They are ideal for small and medium-sized businesses who recognize the need for an improved talent retention strategy but are unable to absorb the high costs of engaging a dedicated consultant.