Cost-of-Turnover Worksheet

ESSENTIAL DATA

Employee's classification:	______________
Employee's hourly pay rate:	______________
Employee's supervisor pay rate:	______________
Corporate office staff pay rate:	______________	(may be an average)

HARD COSTS

Pre-Departure
Separation processing Administrative time	Hours _____	x Wages $_____	= $________
Vacancy Costs
Coworker burden Overtime; Added shifts	Hours _____	x Wages $_____	= $________
Hiring search firm or temp. agency	Hours _____	x Wages $_____	= $________
Developing advertisement(s) Administrative time	Hours _____	x Wages $_____	= $________
Placing advertisement Cost of advertising space(s)	Hours _____	x Wages $_____	= $________
Selection & Sign-On
Interviewing	Hours _____	x Wages $_____	= $________
Reference checking	Hours _____	x Wages $_____	= $________
Drug testing/psychological testing	Hours _____	x Wages $_____	= $________
Orientation & on-the-job training	Hours _____	x Wages $_____	= $________
Total “Hard Costs” of Turnover			= $________

SOFT COSTS

Pre-Departure
Lost productivity of departing employee Exiting employee performance at 50%-75%	Hours _____	x Wages $_____	= $________
Lost productivity of co-workers	Hours _____	x Wages $_____	= $________
Increased time discussing departure and organizational conditions Increased work load for employees	Hours _____	x Wages $_____	= $________
Lost productivity of supervisor	Hours _____	x Wages $_____	= $________
During Vacancy
Lost productivity of vacant position Overtime Added shifts	Hours _____	x Wages $_____	= $________
Lost productivity of supervisor Time spent filling in	Hours _____	x Wages $_____	= $________
Recruiting administration Supervisor's time with Schedule changes/overtime	Hours _____	x Wages $_____	= $________
Selection and Sign-On
Lost productivity during training Replacement requires Support/direction	Hours _____	x Wages $_____	= $________
Lost productivity of co-workers Existing employees distracted	Hours _____	x Wages $_____	= $________
Lost productivity of supervisor	Hours _____	x Wages $_____	= $________
Total “Soft Costs” of Turnover			= $________

TOTAL COST OF TURNING OVER ONE EMPLOYEE

Hard Costs + Soft Costs

= $________

FORMULA FOR ANNUAL TURNOVER COST

Number of exiting employees ________ x cost of turnover (hard + soft)     

= $________    

The above sample worksheet was made available by the U.S. Department of Labor (http://www.dol.gov/cfbci/turnover.htm) and was created by the Paros Group, Inc.