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Impact of Turnover Calculator

Turnover is a business' Achilles' heel. This soft cost can run untraced and erode a businesses profit and long term success. Based on a broad range of industry averages, and being conservative, turnover can run about 25% to 300% of the annual caring cost of an employee (salary plus benefits) Benefits on average cost about 30% of an employees annual salary.

What impact is employee turnover having on your bottom-line?

Scenario #1

  • Business with 25 employees
  • Average annual salary across all positions is $30,000/employee
  • Average benefit cost per employee is $9,000/employee
  • Average turnover for business - planned and unplanned is 15% or 3.75 employees
  • Bottom-line Impact $60,750
  • 10% of the business generating $600,000 in gross profits

Scenario #2

  • Business with 60 employees
  • Average annual salary across all positions is $35,000/employee
  • Average benefit cost per employee is $10,000/employee
  • Average turnover for business - planned and unplanned is 10% or 6 employees
  • Bottom-line Impact $110,250
  • Covers the cost of over 10 employees for annual benefits

Scenario #3

  • Business with 125 employees
  • Average annual salary across all positions is $40,000/employee
  • Average benefit cost per employee is $12,000/employee
  • Average turnover for business - planned and unplanned is 5% or 6.25 employees
  • Bottom-line Impact $131,000
  • the cost of 2 plus employees annually

How is your business impacted?

Select your situation elements below.

Total number of employees
Average annual salary
Total number of staff replaced in past 12 months
Potential impact on your bottom-line

This simple calculation is a quick view into the potential impact on the profitability of the business. For a more complete set of assessment questions, click calculate.

 

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