Employee Turnover and Lack of Organizational Focus Cost Calculator

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Employee Turnover and Lack of Organizational Focus Cost Calculator Powered By Docstoc
					             Cost to Organization of Employee Turnover and Lack of Employee Focus
                                                                                                                              Total Cost ($)
Cost Per Employee Turnover                         Position Salary    Cost To Rehire Position (2.5 times Position Salary)
                                                                                                                              To Company
Cost studies have shown that cost to replace
an employee is actually 2.5-3.5 times salary.
Costs include termination costs, job reposting
costs, learning curve for new employee, Loss
of productivity for others filling in and hiring
costs for termed employee(relo, etc.)

Cost to replace good employee leaving to
                                                                                             2.50                                 0.00
work at a competitor.
Cost to replace bad hire who needed to be
                                                                                             2.50                                 0.00
terminated due to poor performance.

                                                                     Cost of time spent on things that do not contribute to   Total Cost ($)
Loss of Productivity Cost                          Position Salary
                                                                             the organization's strategic priorities          To Company
(A study conducted by Franklin Covey found
workers report spending only 49% of their
time on activities they believe are directly
linked to their organization's key priorities)

Yearly cost per employee not focused on
strategic priorities. (51% of activities                                                     0.51                                 0.00
not contributing to strategic objectives)
Yearly cost to organization of not
terminating nonperforming employee.
                                                                                             0.25                                 0.00
(75% job performance, 25% of salary for
below expectation performance)
Total Cost to Organization                                                                                                        0.00