Employee turnover is expensive. Losing and replacing employees directly
impacts your bottom line, productivity levels, and employee morale.
Ultimately, improving the way you identify, hire, and retain employees is the
best strategy for reducing your turnover costs. At the same time, it’s important
that you understand what the potential costs are.
The following worksheet will help you calculate the core costs of turnover.
This is simply a starting point. Customize to your organization by adding or
removing categories.
Please also keep in mind that these are measurable costs. Other areas that
factor into turnover costs may include the increased workload, stress, and
pressure other employees assume due to vacancies as well as reduced productivity
and efficiency.