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New Turnover Cost Calculation
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Turnover Cost Calculation
Cost-of-Turnover Worksheet
Essential DataEmployee's classification ______________
Employee's hourly pay rate: ______________
Employee's supervisor's pay rate: ______________
Corporate office staff pay rate (may be an average):______________
Hours WagesHARD COSTS:
Pre-Departure
Separation processingAdministrative time
Vacancy costsCo-worker burdenOvertime: added shiftsHiring search firm or temp. agency
Developing advertisement(s)Administrative timePlacing advertisementCost of advertising space(s)
Selection & sign-on InterviewingReference checkingDrug testing/psychological testingOrientation & on-the-job training
Total "Hard Costs" of Turnover
SOFT COSTSPre-departure
Loss of productivity of departing employee (existing employee performance = 50% to 75% )
Lost productivity of co-workers (increased time discussing departure and organizational conditions.
Increased workload for employeesLost productivity of supervisor
During vacancyLost productivity of vacant positionOvertime
Added shifts
Lost productivity of supervisor (time spent filling in)Recruiting administration
Supervisor's time with schedule changes/overtime
Selection and Sign-OnLost productivity during trainingReplacement requires support/directionLost productivity of co-workersExiting employees distractedLost productivity of supervisor
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.)
Total
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000
0000
0000
0
0
0
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0
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0
0
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.)