Cost of Turnover Calculator
Quantify turnover costs at your institution
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Topics: Turnover, Recruitment and Retention, Workforce, Staffing, Labor Expense, Finance, Employee Engagement, Employee Communication, Employee Recognition, Practice Management, Physician Issues
Tool in Brief
Purpose
Provides an accurate and reliable estimate of institution-specific cost of turnover for a specific employee, type of position, individual unit, or the entire organization.
Suggested users
HR leaders
Type of tool
Excel-based, Calculator/Forecaster
Key Information
Estimated completion time
- Shortcut Calculator - 30 minutes to one hour
- Comprehensive Worksheet - three to four hours
Required inputs
- Separations costs- Costs associated with separation of an employee or employees (e.g., continued benefits and administrator costs)
- Replacement costs-Costs associated with replacement (or temporary labor)
- Recruitment costs- Costs associated with recruitment for vacant positions
- Onboarding costs- Costs associated with formal and informal training of new hires
- Lost revenues- Lost incremental revenues associated with staffing shortages
Tool outputs
- Institution-specific estimate of total cost of turnover for a specific employee, type of position, individual unit, or the entire organization
- Average cost per separation
Shortcut Calculator vs. Comprehensive Worksheet
Shortcut Calculator
- Generates quick snapshot of overall cost of turnover for the organization
- Does not require specific data points for certain hospital constituencies; all inputs should be easily accessible to HR
- Using average institutional data produces less precise estimates than the comprehensive approach
Download Excel tool
Comprehensive Worksheet
- Provides more precise cost of turnover estimates for a specific department or employee group
- Requires managers and HR leaders to estimate time spent on various activities related to turnover
- Best employed for a smaller subset of employees (e.g., hard-to-fill positions, specific units) rather than for the entire institution
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