Turnover Cost Calculator
Estimate the true cost of replacing an employee when they leave.
$
$
Job postings, recruiter fees, etc.
Hours spent training new hire
$
Cost of trainer's time
Ramp-up time for new hire
%
How much less productive during training
Enter position salary to calculate turnover cost
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The Hidden Costs of Turnover
Employee turnover is expensive. Research shows replacing an employee can cost anywhere from 50% to 200% of their annual salary, depending on the role's complexity and seniority.
Cost Breakdown
Direct Costs
- Recruiting: Job postings, recruiter fees, background checks
- Interviewing: Manager and team time spent interviewing
- Onboarding: HR processing, paperwork, setup
- Training: Formal training programs and materials
Indirect Costs
- Lost productivity: New hires take 8-12 months to reach full productivity
- Institutional knowledge: Experience and relationships lost
- Team impact: Morale and workload on remaining employees
- Quality: Mistakes and errors during learning curve
- Customer impact: Service disruptions, relationship changes
Turnover by Role Type
| Role Level | Cost to Replace |
|---|---|
| Entry-level | 50-60% of salary |
| Mid-level | 75-125% of salary |
| Senior/Specialist | 100-150% of salary |
| Executive | 150-200%+ of salary |
Reducing Turnover
Given these costs, investing in retention makes financial sense. Strategies include:
- Competitive compensation and benefits
- Career development opportunities
- Strong management and leadership
- Positive workplace culture
- Work-life balance initiatives
- Regular feedback and recognition