Employee Turnover Cost Calculator
Replacing an employee costs between 50% to 200% of their annual salary. This tool provides a concrete estimate based on industry averages for recruitment, onboarding, and lost productivity during the ramp-up period.
Estimated Replacement Cost
$0
Cost Breakdown Estimate
| Recruitment & Agency Fees | $0 |
| Onboarding & Training | $0 |
| Lost Productivity (Ramp-up) | $0 |
The Hidden Costs of Turnover
When an employee leaves, the financial impact extends far beyond recruiting fees. Understanding this total cost is critical when justifying retention budgets or counter-offers.
| Cost Category | Description |
|---|---|
| Recruitment | Advertising, internal HR time, interviewing time (for the manager and peers), and external agency fees. |
| Onboarding | IT setup, training materials, and the time spent by managers and peers training the new hire. |
| Lost Productivity | A new hire typically takes 3-6 months to reach the productivity level of the departing employee. During this ramp-up period, the company is paying full salary for partial output. |
Methodology & Assumptions
This calculator uses standard industry benchmarks (Gallup, SHRM) which estimate total turnover costs between 0.5x and 2.0x of base salary depending on role seniority. The breakdown allocates roughly 30% to recruitment, 10% to hard onboarding costs, and 60% to lost productivity during the vacancy and ramp-up phases.