We found in The Real Cost of Employee Turnover that the #1 challenge faced by Human Resource teams is Employee Turnover.
For almost all positions that require specific skills - the median cost of turnover was 21% of the departing employee’s salary. But does this make sense for your company? It was a common question we were asked, so we created a simple tool for you to use.
Employee Turnover Calculator
The Employee Turnover Calculator is a google sheet that you can use to calculate the real cost of employee turnover for your company.
How can you use it?
- - Open the Calculator
- - Click 'File' and 'Make A Copy' to save your own version
- - Adjust cells in orange fade (the assumptions)
What are the template assumptions?
The Employee Turnover calculator accounts for basic employee turnover through its four key components:
- - Departing Employee Offboarding: the costs your company incurs through the departing employee, coworkers and manager focusing on the knowledge transfer.
- - Vacancy Costs: the costs the coworkers and manager incur juggling the new responsibilities while the manager finds a replacement.
- - New Employee Recruitment: the costs for the job postings and manager finding the new hire.
- - New Employee Onboarding: the costs of onboarding the new employee, transitioning the tasks from coworkers and manager oversight.
On our base assumptions - we found that employee turnover costs are ~32% of the departing employee’s salary.
Every company is different and our numbers are not meant to be taken as right for everyone. We encourage you to invest 5 minutes with the calculator to understand the real costs of employee turnover for your company.
Disagree with our Numbers?
Great - let us know in the comments how we can improve it. We will appreciate it and give you a shout-out in this post.
Providing a great employee onboarding experience can go a long way towards decreasing employee turnover. Want to learn more about how employee onboarding can help you building better connected, more engaged & higher performing teams?
Download the Sapling Guide to Employee Onboarding Success, or sign up for a free product demo below.