|
Turnover Ratio: The number
of employees who left, divided by the average number employed per year. |
|
Separation Costs |
| Interviewer’s
time (hours spent x hourly rate*) |
$ |
| Terminated
employee’s time (while on payroll: hours spent x hourly rate) |
$ |
| HR administrative
functions (terminated paperwork: hours spent x hourly rate) |
$ |
| Separation
pay |
$ |
| Total separation
costs |
$ |
| *Include
benefits in the hourly rate. |
$ |
| |
|
|
Replacement Costs |
| Advertising |
$ |
| Internal
communications (development time x hourly rate) |
$ |
| Interview
time (hours spent x hourly rate for interviewer) |
$ |
| Administrative
functions (typing, copying: hours spent x hourly rate) |
$ |
| Applicant
testing (such as validated aptitude tests) |
$ |
| Applicant
travel expenses |
$ |
| Applicant
relocation expenses |
$ |
| Total replacement
costs |
$ |
| |
|
|
Training Cost |
| Employee
workbooks (printing + time for development x hourly rate) |
$ |
| Orientation(s)
(new employee time + staff time x hourly rates) |
$ |
| On-the-job
training (employees’ time x hourly rates) |
$ |
| Total training
costs |
$ |
| |
|
| Separation
+ Replacement + Training = |
$
|
| Per Employee
Cost |
|
| (total costs
÷ number left in the company) = |
$
|
Source:
Bridging the Generation Gap ,
by Linda Gravett and Robin Throckmorton (The Career Press,
2007) |
|
= Member Only
