The high costs of losing talented employees runs far and deep, particularly in small to mid-size businesses. These costs include direct costs such as hiring and training replacements, as well as indirect costs such as lost business and productivity. This Cost Calculator will give you an estimate of these costs in your company.

While there are various ways of estimating the cost of losing a valued employee, most important is that your company's management team agrees that the final cost estimate is accurate. Only then can you use the total turnover cost as a tracking tool to measure turnover's real cost, the true savings as turnover is reduced, and establish an accurate return on investment for all employee retention initiatives.

Direct turnover costs are those costs that result from actions to exit employees who are leaving and then hire and train their replacements. These costs are typically easier to measure than the indirect costs. Below is a model for calculating these costs.

Targeted Job Name:
Average Annual Salary & Benefits:
Separation Costs
1. Exit Interviews
2. Admin. Functions
3. Separation Pay
4. Unemployment Tax
5. Other
6. Total Sep. Costs:
Vacancy Costs
7. Temporary Help
8. Overtime
9. Other
10. Total Vac. Costs
Aquisition Costs
Recruiting
11. Advertising
12. Recruiting Agency
13. Recruiting Incentives
Selection
14. Interviews
15. Assessments
16. Background Check
17. Drug Tests
18. Physicals
19. Reference Checks
Hiring
20. Hiring Bonuses
21. Relocation
22. Other
23. Total Hiring Costs
Placement Costs
24. Supplies/Materials
25. Orientation
26. Training
27. Other
28. Total Plac. Costs
29. Total Direct Turnover Costs
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