Employee Turnover Definition Use our free Employee Turnover Calculator to figure out how much it will cost to replace employees. Employee turnover calculation will require several pieces of information such as:
the base salary of a new employee
the average number of days it takes to fill a position
the yearly salary of the hiring manager
the average number of hours the hiring manager uses to look over resumes
the average number of hours used to interview a potential employee
how many days it takes to train a new hire
the average number of hours spent on advertising the vacant position
After all of these numbers have been inputted the calculator the results will show how much money it takes to replace an employee. The results will be shown on the next page with detailed information about the costs associated with hiring a new employee. The calculator will figure out:
the cost of benefits for the employee
the monthly salary plus benefits
the daily and total costs for an employee to cover the vacant position
the cost to hire for a new position
the daily rate of pay for a training manager
training cost of a new hire
productivity and loss rate
the total cost of an employee turnover
Costs of Employee Turnover When there is no employee to fill a company’s vacancy, productivity can decrease dramatically especially when it is a key employee. Employers can lose a substantial amount of money every day when they need to fill a vacancy. Since trying to find a new employee to fill a vacancy can cause the company to lose money, an employee turnover calculator is an important tool that will help determine the costs associated with the search and hiring of a new employee. The costs to replace an employee or fill a position can include:
time spent on interviews
advertising the vacancy
training the new hire
Many companies find the cost and tims spent hiring new employees so high that they would rather place a premium on reducing turnover by paying higher salaries or rewarding their existing employees in other ways in a bid to retain them.
A Fully Customizable Calculator Users can embed the employee turnover calculator onto their own website. There are 2 options available: a customizable calculator or a free calculator. Users who choose to customize the color and the font of the calculator will need to pay a one-time fee of $19.99. Only paid customers can get the calculator with fully customizable options. Users can also get the same calculator for free which comes with the default options and a required back link.
How to Use the Results Employers can calculate their employee turnover costs each month or print out the results to give to their human resources department. The results may also be used to re-do the company’s budget or figure out how to best retain employees to reduce employee turnover costs.
Important Things to Remember The following are some important things to keep in mind when calculating employee turnover costs:
When inputting HR and hiring manager’s salaries in to the calculator, use the exact number if at all possible. If they work for commission, it is best to round to the nearest whole number rather than use an average.
Ask the Human Resources manager or hiring manager to calculate the amount of hours they spend each day looking through resumes and interviewing potential candidates. Average these numbers together to get the most accurate result.
Users who only use an average number instead of an exact number will see varied results. The amount calculated may not be the exact cost of employee turnover as a result of these numbers.
Plan ahead with this calculator and see how much it will cost you to hire a new employee or if it would be less costly to increase your current employees pay to keep them on the payroll.
How to Calculate Employee Turnover Let's be honest - sometimes the best employee turnover calculator is the one that is easy to use and doesn't require us to even know what the employee turnover formula is in the first place! But if you want to know the exact formula for calculating employee turnover then please check out the "Formula" box above.