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Excellent Turnover Cost Calculator

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Excellent Turnover Cost Calculator Powered By Docstoc
					                                           Calculating Turnover Costs
  How much does turnover cost you? Research shows that the cost of turnover averages between 50-200% of an
                                               employee's annual salary.
   In the blue cells below, enter your actual hours and hourly rate for each category to see how much turnover is
                                                costing your business.


                                                     $ Hourly
                                        # of Hours              Total
                                                       Rate


Pre-Separation Costs:
+ cost of lower productivity                                        $0.00

+ cost of grievance procedure or                                    $0.00
other pre-separation meetings by
departing employee
+ cost of grievance procedure or                                    $0.00
other pre-separation meetings by
employee's manager
+ cost of grievance procedure or                                    $0.00
other pre-separation meetings by HR

+ cost of attorney's fees                                           $0.00
Separation Processing Costs:
+ cost of exit interviewer's time                                   $0.00

+ cost of departing employee's time                                 $0.00

+ cost of administrative functions                                  $0.00
relating to the departure
+ cost of separation pay or severance                               $0.00

+ cost of unemployment tax related to                               $0.00
the departure
Replacement Hiring Costs:
+ cost of attracting applicants (ads,                               $0.00
job fairs, internet postings)
+ cost of agency fees                                               $0.00


+ pre-employment administrative                                     $0.00
expenses
+ cost of reviewing resumes                                         $0.00
+ cost of candidate interviews by HR                                $0.00

+ cost of candidate interviews by                                   $0.00
hiring manager
+ cost of aptitude, skill, drug etc.                                $0.00
testing
+ cost of hiring decisions meetings by     $0.00
HR
+ cost of hiring decisions meetings by     $0.00
hiring manager
+ cost of post employment physical         $0.00
exams
+ cost of signing bonus                    $0.00

+ relocation costs                         $0.00


+ cost of employee referral bonus          $0.00



+ cost of background check                 $0.00


+ cost of new hire orientation and file    $0.00
set up by HR
+ cost of new hire orientation by new      $0.00
employee
+ cost of post-employment info setup       $0.00
by IT (phone, computer, security, etc.)

Training New Hire Costs:
                                           $0.00
+ cost of information literature
+ cost of general orientation by trainer   $0.00
(HR or co-worker)
+ cost of general orientation by new       $0.00
employee
+ cost of job orientation by trainer       $0.00
(HR or co-worker)
+ cost of job orientation by new           $0.00
employee
Lost Productivity and Lost
Business Costs:
+ cost of additional overtime to cover     $0.00
the vacancy
+ cost of additional temporary help        $0.00


- wages and benefits saved due to          $0.00
the vacancy
+ cost of performance differential         $0.00
while new employee gets up to speed

+ cost of low morale-related time          $0.00
wasted due to "water cooler
grumbling"
+ cost of lost customers, sales, profits               $0.00
due to the departure
+ cost of additional employee                          $0.00
departures related to the departure

Miscellaneous Costs:
+ costs of litigation, mediation, or                   $0.00
administrative hearings

Total:                                     0.0   0.0   $0.00
over Costs
e cost of turnover averages between 50-200% of an
al salary.
ate for each category to see how much turnover is
siness.
            (Sample for Software Engineer Who Was
           Fired for Poor Performance) Assumptions:
             10 years experience, BSEE; 28% fringe
                 rate; So. Calif; $43/hr. base pay


           (2 hours @ $43 x 128% x 5         $2,201.60
           days x 4 weeks)
           (2 hours @ $43 x 128%)             $110.08


           (3 hours @ $65 x 128%)             $249.60


           (3 hours @ $25 x 128%)              $96.00


           (5 hours @ $300)                  $1,500.00

              (1 hour @ $25 x 128%             $32.00
           fringe)
              (1 hour @ $43 x 128%             $55.04
           fringe)
              (2 hours @ $16 x 128%            $40.96
           fringe)
              (80 hours @ $43)               $3,440.00

             (varies by state, payroll and      $0.00
           experience rating)

               (annual recruiting budget /    $800.00
           number of positions filled)
           (retained averages 33%;
           contingency averages 20% of
           first year's salary)
               (3 hours @ $16 x 128%)          $61.44

           (10 hours @ $25 x 128%)            $320.00
             (5 interviews @ 1 hour x @       $160.00
           $25 x 128%)
             (5 interviews @ 1 hour x @       $416.00
           $65 x 128%)
             (1 hour @ $16 x 128% + $40       $135.48
           + $75)
  (1 hour @ $25 x 128%)            $32.00

  (1 hour @ $65 x 128%)            $83.20

   (assumes performed at          $125.00
nearby clinic)
  (Varies by company, position   $5,000.00
and necessity)
(Assumes no local candidates -
can range from a few thousand
to $100K)
   (Per company policy and       $2,500.00
industry standards; for
engineers, range from $500 -
$5000)
(depends on number of             $100.00
countries, counties, types -
averages from $50 - $250)
(2 hour @ $16 x 128%)              $40.96

(1 hour @ $43 x 128%)              $55.04

(1 hour @ $35 x 128%)              $44.80



(manuals, brochures, policies,     $25.00
etc.)
   (16 hours @ $40 x 128%)        $819.20

  (16 hours @ $43 x 128%)         $880.64

  (unit orientation 80 hours @   $4,096.00
$40 x 128%)
  (unit orientation 80 hours @   $4,403.20
$43 x 128%)


   (20 hours @ $43 x 1.5 x       $9,907.20
128% x 6 weeks)
(temp agency markup
averages 55%-65% over
employee rate)
   (40 hours @ $43 x 128% x 6 ($13,209.60)
weeks)
(120 hours @ $43 x 128% x        $1,320.96
20%)

(1 hour @ $40 x 128% x 5 days    $1,024.00
x 4 weeks)
(gross profit loss x % profit
margin)
(if just one other engineer
leaves, the cost is equal to the
total of these costs)

(this includes attorney's fees,
as well as costs associated
with hearings)
Total                              $26,865.80

				
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