Turnover Cost Template
Turnover Cost Template
Turnover Cost Template
Yes/No Ask yourself these questions: Are we consistent with employee training? Are there occassions we are so short staffed that work schedules are not filled? Do the employee's morale appear to be low? Do our employees seem to have no motivation? We know we have a turnover problem, but we don't know how to fix it? We just don't seem to know how to hire the right people for our organization? We are not sure of the level of employee satisfaction? Why employees really quit is not something we know about? Performing exit interviews is not our to-do list? We have had task forces try to research and solve the employee turnover issue? Is there no system in our business for tracking customer complaints?
For example:
Number of employees.................................................... 500 Annual turnover ............................................................. 60% Number of employees turning over ................................. 300 Average turnover cost per employee ............................ $1,694 Total annual cost ........................................................ $508,000 Savings from reducing turnover by 15% ....................... $126,000
Turnover costs also take into account indirect costs. The experienced manager knows that the indirect costs of turnover can be 2 to 5 times higher than direct costs. These costs are more difficult to quantify and assign a dollar figure to, but they are very real.