Turnover Attrition Cost Estimator
Calculate the total cost of employee turnover including lost productivity. Enter values for instant results with step-by-step formulas.
Formula
Total Cost = Separation + Replacement + Productivity Loss
The total cost of turnover is the sum of three components: 1) Separation Costs (admin, severance), 2) Replacement Costs (marketing, recruiter fees, bonuses), and 3) Productivity Loss (salary paid during vacancy and ramp-up period where output is below 100%).
Worked Examples
Example 1: SHRM - Cost of Turnover
Problem: Salary $80k. Hiring Cost $10k. 4 month ramp-up at 50% productivity.
Solution: Separation: $800. Replacement: $10k. Productivity Loss: ($6.6k/mo * 4 * 0.5) = $13.3k. Total: $24.1k.
Result: $24,100 per departure (30% of salary)
Frequently Asked Questions
What is the average cost of employee turnover?
Estimates range widely but typically fall between 33% (for entry-level) to 200% (for executives) of the employee's annual salary. This includes hard costs like recruiting and soft costs like lost productivity.
What counts as 'Replacement Cost'?
This includes advertising job openings, recruiter fees (often 15-20% of salary), background checks, time spent by managers interviewing candidates, and relocation bonuses.
Does this include 'Vacancy Cost'?
Turnover Attrition Cost Estimator focuses on the cost of *replacing* the person. Vacancy cost (work not getting done while the role is empty) is an additional impact, often felt as team burnout or missed revenue targets.
What is a healthy turnover rate?
10-15% is generally considered healthy, allowing for fresh talent without disruption. <5% might indicate stagnation; >20% indicates instability. Industries like retail/hospitality naturally have higher rates.
Why is voluntary vs. involuntary turnover important?
Voluntary (quitting) is often preventable and indicates retention issues. Involuntary (firing/layoffs) is a management decision. High voluntary turnover of top performers is the most damaging.
How can I reduce turnover costs?
Focus on retention: competitive compensation, clear career paths, good management, and flexibility. Improving onboarding can also reduce the 'productivity loss' component of turnover cost.