Estimate the annual cost of employees leaving.
Every departure costs recruiting, onboarding and lost productivity, and multiplying that by the expected number of exits yields the yearly bill. Turnover is usually the largest invisible cost in a labor-heavy business, so putting a dollar figure on it justifies retention spending.
Cost of Employee Turnover
Turnover cost = salary x replacement% x (headcount x turnover rate)
Turnover cost = salary x replacement% x (headcount x turnover rate) Every departure costs recruiting, onboarding and lost productivity, and multiplying that by the expected number of exits yields the yearly bill.
Turnover is usually the largest invisible cost in a labor-heavy business, so putting a dollar figure on it justifies retention spending.
This calculator takes 4 inputs: Average annual salary, Replacement cost as share of salary, Annual turnover rate, Total headcount. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.