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Employee Turnover Cost Calculator

Calculate the true financial impact of losing and replacing staff.

Estimated Loss Results

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Total Financial Impact on Business

$0

Cost Per Employee

$0

Productivity Loss

$0

Total Hiring Cost

Understanding the Cost of Employee Turnover

Employee turnover is more than just a vacant desk. It represents a significant financial drain on businesses of all sizes. When an employee leaves, the company loses historical knowledge, client relationships, and team momentum. Our Employee Turnover Cost Calculator helps you quantify these hidden expenses.

How Turnover Costs are Calculated

Economists and HR experts generally divide turnover costs into four distinct buckets:

• Recruitment Costs: Advertising the position, paying agency fees, and background checks.
• Onboarding and Training: The direct costs of materials and the "opportunity cost" of existing staff spending time teaching the new hire.
• Productivity Loss: It typically takes a new employee 6 to 9 months before they are fully ramped up to the productivity level of their predecessor. Studies suggest this loss is equivalent to roughly 25% to 50% of the annual salary.
• Separation Costs: Severance pay and the administrative time required for exit interviews and payroll processing.

The Rule of Thumb

While costs vary by industry, a common benchmark is that replacing an entry-level employee costs about 30% to 50% of their annual salary. For mid-level roles, this jumps to 150%, and for highly specialized or executive roles, the cost can reach 200% or more.

Example Calculation

Imagine a Marketing Manager with a salary of $70,000. If they leave, the calculation might look like this:

• Hiring Costs (Ads & Fees): $5,000
• Interviewing (10 hours x $50/hr): $500
• Training & Onboarding: $4,000
• Productivity Loss (25% of salary): $17,500
• Total Estimated Cost: $27,000

In this scenario, replacing a single manager costs the business nearly 40% of their annual salary.

How to Reduce Turnover Costs

Focusing on employee retention is far more cost-effective than constant hiring. Strategies include improving workplace culture, offering competitive benefits, providing clear career paths, and conducting stay interviews to understand employee needs before they decide to leave.

function calculateTurnover() { // Inputs var avgSalary = parseFloat(document.getElementById('avgSalary').value); var numEmployees = parseFloat(document.getElementById('numEmployees').value); var hiringCost = parseFloat(document.getElementById('hiringCost').value); var trainingCost = parseFloat(document.getElementById('trainingCost').value); var interviewHours = parseFloat(document.getElementById('interviewHours').value); var interviewerRate = parseFloat(document.getElementById('interviewerRate').value); // Validation if (isNaN(avgSalary) || isNaN(numEmployees) || isNaN(hiringCost) || isNaN(trainingCost) || isNaN(interviewHours) || isNaN(interviewerRate)) { alert("Please fill in all fields with valid numbers."); return; } // Calculations // Productivity loss is estimated at 25% of annual salary (conservative industry standard) var productivityLossPerPerson = avgSalary * 0.25; // Interview cost var interviewCostPerPerson = interviewHours * interviewerRate; // Cost per employee var costPerEmployee = hiringCost + trainingCost + interviewCostPerPerson + productivityLossPerPerson; // Total turnover cost var totalTurnoverCost = costPerEmployee * numEmployees; // Display Results document.getElementById('result-box').style.display = 'block'; document.getElementById('totalLossDisplay').innerHTML = "$" + totalTurnoverCost.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('perEmployeeDisplay').innerHTML = "$" + costPerEmployee.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0}); document.getElementById('productivityDisplay').innerHTML = "$" + (productivityLossPerPerson * numEmployees).toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0}); document.getElementById('recruitmentDisplay').innerHTML = "$" + ((hiringCost + interviewCostPerPerson) * numEmployees).toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0}); // Scroll to results document.getElementById('result-box').scrollIntoView({ behavior: 'smooth', block: 'nearest' }); }