Cost of Employee Turnover Calculator
This tool is designed to calculate the financial cost of employee turnover at your business. With a few easy to obtain inputs and our algorithms, you will quickly compute the annual financial cost of employee turnover. This is a real cost that tends to get disguised in the financials as compensation, training, outside services, etc. The tool also displays this cost relative to your profitability. By setting a turnover reduction target you will receive an estimate of the profit improvement you can expect when the target is reached.
One of CFO.University’s Contributors worked with their local workforce system to determine the activities and related costs that encompass employee turnover. The costs include:
- Formal Training Costs
- Job Vacancy Costs
- Outside Recruiting Costs
- Internal Hiring Costs
- Post Hiring Costs
- On the Job Training Cost
From the short list of inputs below, you will be amazed at the depth of insight you’ll learn from the tool’s output.
- Number of Employees
- Annual Employee Turnover %
- Average Salary
By simply adding profitability and a turnover reduction target you will determine the potential value creation opportunity your company has from reducing employee turnover. The tool’s output is frequently used to kick off the management team’s discussion on workforce planning, workforce development and employee retention.
To further enhance your development in this area see our article Don’t Fall Into the Turnover Trap – Do This Instead
Let us know how we can improve our tools to better serve you.
If you have any questions or stumble along the way, please reach out to us at CFO.University. You wouldn’t be here if you didn’t believe professional growth was critical to your success. We wouldn’t be here if we couldn’t help you accomplish that.
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Non-Member Price: $10