Turnover Cost Calculation

Cost-of-Turnover Worksheet

Essential DataEmployee's classification ______________

Employee's hourly pay rate: ______________

Employee's supervisor's pay rate: ______________

Corporate office staff pay rate (may be an average):______________

HoursHARD COSTS:

Pre-Departure

Separation processingAdministrative time

Vacancy costsCo-worker burdenOvertime: added shiftsHiring search firm or temp. agency

Developing advertisement(s)Administrative timePlacing advertisementCost of advertising space(s)

Selection & sign-on InterviewingReference checkingDrug testing/psychological testingOrientation & on-the-job training

Total "Hard Costs" of Turnover

SOFT COSTSPre-departure

Loss of productivity of departing employee (existing employee performance = 50% to 75% )

Lost productivity of co-workers (increased time discussing departure and organizational conditions.

Increased workload for employeesLost productivity of supervisor

During vacancyLost productivity of vacant positionOvertime

Added shifts

Lost productivity of supervisor (time spent filling in)Recruiting administration

Supervisor's time with schedule changes/overtime

Selection and Sign-OnLost productivity during trainingReplacement requires support/directionLost productivity of co-workersExiting employees distractedLost productivity of supervisor

Total "Soft Costs of Turnover

TOTAL COST OF TURNING OVER ONE EMPLOYEE (hard costs + soft costs)

FORMULA FOR ANNUAL TURNOVER COST

Number of exiting employees x cost of turnover (hard + soft) = $ _____.

The above sample worksheet was made available by the U.S. Department of Labor (http://www.dol.gov/cfbci/turnover.htm) and was created by the Paros Group, Inc.)

Wages Total

0

000

0000

0000

0

Loss of productivity of departing employee (existing employee performance = 50% to 75% ) 0

Lost productivity of co-workers (increased time discussing departure and organizational conditions. 0

00

00

0

00

0

00000

0

TOTAL COST OF TURNING OVER ONE EMPLOYEE (hard costs + soft costs) 0

The above sample worksheet was made available by the U.S. Department of Labor (http://www.dol.gov/cfbci/turnover.htm) and was created by the Paros Group, Inc.)