Hiring and turnover cost calculator
What does replacing a worker really cost, counting the empty post and the ramp-up?
The items of one replacement added up, split between what leaves the checkbook and what leaves the day.
Your result
Fill in at least one line of the bill to see what one replacement cost. With two lines or more the breakdown appears, with the cost of the post the reference readings appear, and with the replacements the total for the period appears.
Replacing this person cost more than a whole year of the post, charges included. It happens, and the literature records cases near one and a half times the annual wage, which is a shorter ruler than this one. At that level almost any retention spending pays for itself.
Where the money went
The biggest line
How to read itThis total is a floor, and deliberately so. Lost output is priced at what the post COSTS per month rather than at what it earns, which on a profitable operation is more; if the decision comes out close, price that line again at what the post earns. A line left blank does not become zero: it drops out of the sum, and the screen says so when what dropped out was the empty post or the ramp. And the share of the post’s annual cost does not compare directly with published surveys, which divide by the wage alone and therefore return a bigger share for the same money.
Take this replacement’s bill in writing
The report carries your figures, the seven lines with the weight of each, the two families, the three reference readings with their interpretation, the calculation trail step by step and the source’s pre-hire and post-hire split, in a document you can print and file beside the next exit.
Done.
You will get the next management article by email. Your report is below.
Fill in at least one line of the bill to generate the report.
Replacing someone has seven lines, and two of them leave no receipt behind: the days the post sat empty and the months the new hand worked below full output. Fill in all seven, see the weight of each, and read the total in months of payroll for that post and in what it would let you pay on top every month for a year.
In the worked example the checkbook side, the exit paperwork and the advertisement and the exam, comes to 4,600, while the whole bill comes to 17,800: the three lines the books cannot name as a replacement, the empty post and the months below full output, are the bulk of it.
The weights come from a hospital turnover costed to the cent by Ruiz, Perroca and Jericó, where the new hire’s lower productivity was 63.6 percent of the total and the vacant post 29.5, so the tool reads its result as a floor: not a target, because no published figure is agricultural enough to be one.