Cost Of Turnover Worksheet StuderGroup by alicejenny

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									           Worksheet to Estimate of Cost of Turnover:
    1. Separation Costs
          a. $____ Unemployment Insurance
          b. $____ Health Insurance Continuation (beyond last day worked)
          c. $____ Exit Interview
          d. $____ Unfunded Flexible Spending Account expense
          e. $____ Other
    $___________ SEPARATION COST SUBTOTAL
    2. Replacement Costs
          a. $____ Advertising
          b. $____ HR staff labor
          c. $____ Pre-employment Screening
          d. $____ Supervisor time
          e. $____ Selection and Peer Interview
    $___________ REPLACEMENT COST SUBTOTAL
    3. Training Costs
          a. $_____ Formal Orientation
          b. $_____ Coworker Trainer Time
          c. $_____ Supervisor Time
    $___________ TRAINING COST SUBTOTAL
    4. Productivity Costs
          a. $_____ Decreased Morale
          b. $_____ Decreased Production
          c. $_____ Error Rates
          d. $_____ Company Reputation
     $___________ PRODUCTIVITY COST SUBTOTAL
--------------------------------------------------------------------------------------------
     $_____________ GRAND TOTAL
NOTE: Most sources estimate that individual turnover cost is equal to 1 and 3 times the
person’s annual compensation (salary plus benefits)
                    EXAMPLE: Covenant Hospice
                 (based on employee salary of $37,400)
       Worksheet to Estimate of Cost of Turnover:
1. Separation Costs
      a. $ 200 Unemployment Insurance (variable)
      b. $ 600 Health Insurance Continuation beyond last day worked (variable)
      c. $ 200 Exit Interview (fixed)
      d. $ 500 Unfunded Flexible Spending Account expense (variable)
      e. $____ Other
$ 1,500 = SEPARATION COST SUBTOTAL

2. Replacement Costs
      a. $1250 Advertising (variable)
      b. $ 500 HR staff labor (fixed)
      c. $ 250 Pre-employment Screening (fixed)
      d. $1500 Supervisor time & lost productivity (variable)
      e. $1500 Selection and Peer Interview (variable)
$ 5,000 = REPLACEMENT COST SUBTOTAL

3. Training Costs
      a. $3,500 Formal Orientation (fixed)
      b. $9,500 Coworker Trainer Time (variable)
      c. $5,500 Supervisor Time (variable)
$ 18,500 = TRAINING COST SUBTOTAL

4. Productivity Costs
      a. $ 2,000 Decreased Morale (variable)
      b. $15,000 Decreased Production (variable)
      c. $ 5,000 Error Rates (variable)
      d. $ 3,000 Company Reputation (variable)
$ 25,000 = PRODUCTIVITY COST SUBTOTAL
--------------------------------------------------------------------------------------------

 $ 50,000 = GRAND TOTAL

$50,000 cost/$37,400 salary = 1.33
1.33 x salary = Conservative Turnover Cost
Amy Bajjaly, VP, Human Resources
Covenant Hospice – August, 2007

								
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