Employee Turnover Cost Calculator is an template with predefine formulas. Using this you can easily calculate Turnover Cost per employee and Estimate Turnover Cost per year for particular department. This template is helpful to small business owners, HR assistants and HR professionals.
Employee turnover rate is a percentage of employees leaving company during specific time and the post is then replaced by company. Turnovers usually occur due to promotions, transfers, voluntary resignations, dismissals, retirements.
Employee Cost of Turnover
Tangible and Intangible cost involve in replacing employee are called Employee Turnover Costs. These costs include final settlement of employee, filling position, training.
Turnover not only causes loss in terms of productivity but has huge impact on companies financial. Many unseen and unaccounted expenses which directly impact on company’s budget.
Employee Turnover Cost Calculator Excel Template
We have design a simple and ready-to-use Employee Turnover Cost Calculator Excel Template with predefine formulas. So, Just download template and input the data into white cells and it will automatically calculate turnover cost per employee for you.
PS: Do not enter any data in blue color cells in the amount column as these cells contain formulas.
Use of Employee Turnover Cost Calculator
Employee Turnover Cost Calculator consists of 6 sections:
- Benchmark Employee Costs.
- Vacant Position Coverage Costs
- Cost To Fill.
- Training Costs
- Productivity Ramp Up Costs
- Turnover Calculations
1. Benchmark Employee Costs
Benchmark employee costs mean total compensation of the departed employee. Divide these compensations into daily and monthly rates. This will help us to accurately define the costs till the position remains empty.
2. Vacant Position Coverage Costs
The post of employee remains vacant until the new employee joins the organization. Thus, the workload is either distribute to other employees or remains constant. Thus, To calculate this cost multiply the number of days the post remains vacant to the benchmark costs provided in the above section.
3. Cost To Fill
However, When an employee leaves, you need to recruit another employee at his place. Although, This is a complete process starting from receiving the applications to employee joining the organization.
4. Cost of Training
Therefore, Just enter the cost of trainer per day and the number of training days and the total training cost will display. So, in case, you don’t have these per day amount of trainer then you can use our Training Cost Per Employee Calculator.
5. Productivity Ramp-up Costs
Moreover, When a new employee joins, initially for 60-90 days he is in the learning process. Thus he doesn’t give 100% productivity as the previous employee. Therefore, A study shows that he gives 50% productivity. It is called productivity ramp up.
6. Cost of Turnover Calculations
Thus, Turnover Cost Per employee is the total of A+B+C+D+E whereas the estimated turnover cost per year is the number of turnovers per year multiplied by the Turnover cost per employee.