Employee Turnover Cost Calculator

The Hidden Cost of High Turnover

Many business owners assume that when an employee leaves, the only cost is paying a recruiter to find a replacement. This is a dangerous misconception. The true cost of turnover often ranges from 30% to 200% of the employee's annual salary, depending on their seniority.

The 3 Phases of Turnover Cost

• 1. Departure & Vacancy: When a role is empty, work doesn't get done. You lose revenue, or you have to pay other employees expensive overtime to cover the gap.
• 2. Recruitment & Hiring: You must pay for job board postings, recruiter commissions (usually 15-20% of salary), and the time your managers spend conducting interviews instead of doing their actual jobs.
• 3. Onboarding & Ramp-Up: A new hire is not 100% productive on day one. It often takes 3 to 6 months for them to reach the productivity level of the person who left. During this time, they are a net-loss to the company.

Why Retention is Cheaper than Hiring

If it costs $40,000 to replace a software engineer, denying them a $10,000 raise when they are unhappy is a terrible financial decision. Use this calculator to prove to management that investing in employee retention, benefits, and raises is actually a cost-saving measure.