Use this worksheet to calculate turnover costs. Included are direct costs, such as the cost of background checks, as well as indirect costs, such as lost productivity. The chart below can be used to show the Green Money or the actual costs of turnover, and the Blue Money or the softer costs of turnover (appropriate salary/hour x time spent on each activity).

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NOTICE PERIOD

Green Money Costs
1) Last paycheck, accrued vacation, separation pay $
2) Increased unemployment tax $
3) Continued benefits $
 

Total Green Money Cost:

 $
     

Blue Money Costs
1) Administrative costs for processing the separation: process benefits; contact unemployment office, Payroll, IS departments; schedule exit interview; etc. $
2) Lower productivity: employee, peers, supervisor, subordinates $
3) Exit interview, transition meetings $
 

Total Blue Money Cost:

 $
     

VACANCY PERIOD

Green Money Costs
1) Advertising and recruiter fees $
2) Interview expenses (meals, mileage, or other) $
3) Printing costs for company marketing materials $
4) Assessments $
5) Criminal checks, reference checks, credit checks, etc. $
6) Medical exams and drug tests $
7) Temporary/contract employee costs $
8) Overtime costs $
9) Relocation expenses and salary $
 

Total Green Money Cost:

 $
     

Blue Money Costs
1) Lost productivity: peers, supervisor, subordinates $
2) Advertising creation and placement $
3) Recruiter selection $
4) Administrative costs: ordering forms and copies of annual reports, scheduling and scoring assessments, coordinating with hiring manager and others, etc. $
5) Resume screening $
6) Interviews: first, second, third $
 

Total Blue Money Cost:

 $
     

HIRING/ORIENTATION PERIOD

Green Money Costs
1) Orientation materials (handbook, video, handouts, etc.) $
2) Formal training programs (materials, course fees) $
3) Informal one-on-one training (materials, if any) $
 

Total Green Money Cost:

 $
     

Blue Money Costs
1) Orientation participants’ salaries $
2) Lost productivity: peers, supervisor, subordinates $
3) Administrative costs: orientation setup, ordering materials, etc. $
4) Informal training and one-on-ones $
 

Total Blue Money Cost:

 $
     

HIDDEN COSTS
1) Missed deadlines and shipments $
2) Loss of organization knowledge $
3) Lower morale due to overwork $
4) Learning curve $
5) Client issues due to turnover $
6) Loss of client relationships $
7) Disrupted department operations $
8) Chain reaction turnover $
 

Total Hidden Cost:

 $
     

GRAND TOTAL REPLACEMENT COST:

 $