Topics: Workforce Planning, Workforce, Turnover, Recruitment and Retention
All too often, hospitals and health systems default to arduous recruitment campaigns for hard-to-fill positions when the most qualified person is the one leaving the organization. Why? Too often, institutions continue to undervalue the costs associated with turnover and, in turn, under-invest in retention and development tactics.
Knowing the total fee for a lost employee can yield numerous benefits, including justifying new retention initiatives and raising awareness of the importance of retention across the institution. Projections of turnover costs vary, but figures generally range from 50% to 150% of the position’s base salary. With such widely varying estimates, it is often difficult to determine the actual cost of turnover to the institution.
Introducing the Center’s Cost of Turnover Calculator
To provide HR Investment Center members more precise cost estimates, the Center is excited to announce the release of the Cost of Turnover Calculator. The calculator provides reliable, institution-specific estimates of the cost of turnover for a specific employee, position type, individual unit, or the entire organization.
To capture the full cost of turnover, this tool accounts for five major types of cost incurred by an employee’s departure:
Two ways to generate reliable cost of turnover estimations
For HR Investment Center members with limited time and/or access to cost data for discrete positions or job types, the Excel-based Shortcut Calculator generates a quick, overall cost of turnover estimate using relatively accessible, average institutional data.
HR Investment Center members seeking more precise estimates are encouraged to use the Comprehensive Worksheet, designed to capture cost of turnover for specific departments, position types, or individuals.
In contrast to the Shortcut Calculator which relies on average cost data, the Comprehensive Worksheet utilizes data specific to a group or unit. Use this tool when analyzing the cost of turnover for hard-to-fill positions where cost of turnover is higher than the institutional average or when making the business case for investment in retaining or developing a certain group of employees.
Not a member of the HR Investment Center?
Daily Briefing readers with questions about the program may visit the Center's website for more information.
