Turnover Cost Calculation

Cost-of-Turnover Worksheet
Essential Data
Employee's classification

______________

Employee's hourly pay rate:

______________

Employee's supervisor's pay rate:

______________

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

______________
Hours
HARD COSTS:
Pre-Departure
Separation processing
Administrative time
Vacancy costs
Co-worker burden
Overtime: added shifts
Hiring search firm or temp. agency

Developing advertisement(s)
Administrative time
Placing advertisement
Cost of advertising space(s)
Selection & sign-on
Interviewing
Reference checking
Drug testing/psychological testing
Orientation & on-the-job training
Total "Hard Costs" of Turnover
SOFT COSTS
Pre-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 employees
Lost productivity of supervisor
During vacancy
Lost productivity of vacant position
Overtime

Added shifts
Lost productivity of supervisor (time spent filling in)
Recruiting administration
Supervisor's time with schedule changes/overtime
Selection and Sign-On
Lost productivity during training
Replacement requires support/direction
Lost productivity of co-workers
Exiting employees distracted
Lost 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/tur

Wages

rmance = 50% to 75% )

Total

0
0
0

0
0
0
0

0
0
0
0
0

and organizational conditions.

+ soft costs)

0
0
0

0
0

0
0
0
0

0
0
0
0
0
0

rtment of Labor (http://www.dol.gov/cfbci/turnover.htm) and was created by the Paros Group, Inc.)