Cost of Turnover Calculator

Quantify turnover costs at your institution

Topics: Turnover, Recruitment and Retention, Workforce, Staffing, Labor Expense, Finance, Employee Engagement, Employee Communication, Employee Recognition, Practice Management, Physician Issues

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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

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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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