Calculate the True Costs of Employee Turnover

John Storts
Slide Show

IT Employment Trends to Watch in 2011

Two-in-five IT employers plan to increase hiring in 2011, up 10 percent from 2010.

Even though you might think otherwise, employee turnover isn't cheap. The many associated costs of worker departure make properly prioritizing employee retention even more important.

 

Info-Tech Research Group's Total Cost of Turnover Worksheet provides a convenient way to calculate the costs of employee turnover so that organizations can make necessary adjustments to retention efforts. It features sections that help you list and organize all costs related to turnover, including:

  • Exit costs directly related to termination
  • Overtime costs related to lost productivity
  • Recruitment costs incurred when the employee was first hired or screened for employment
  • Productivity and training costs incurred when the employee was initially trained

 

However, since the costs the worksheet lists aren't exclusive or exhaustive, you'll want to speak with HR personnel to make sure the company's recruiting, training, retention and termination policies are understood and factored in.

 


Make sure your business isn't giving actions that increase retention and prevent expensive turnover the short shrift. As the worksheet shows, employee departures represent significant costs.

 

More from the Knowledge Network and IT Business Edge

Reduction in Force Calculator

New Employee Cost Calculator

Employee Development Plan



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