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on May 01, 2016 Engagement

How to Calculate the Cost of Employee Turnover

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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?

  1. - Open the Calculator
  2. - Click 'File' and 'Make A Copy' to save your own version
  3. - 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.blog_banner.png

Andy Crebar

Andy Crebar is a Co-Founder of Sapling, which helps companies use Employee Onboarding to amplify their total Employee Experience (‘EX’). He is passionate about people, self awareness and self improvement.