Conservatively speaking, turn over costs companies 25% of annual compensation plus 30% of compensation for benefits

Source Turnover cost, $8 / hr. employee Documentation – Supporting material
Society Human Resource Management $3,500.00 Uncovering turnover costs can be a wake-up call, as it was for Walter Kalinowski, director of HR for a company with 53 truck plazas.
“We were hiring 200 employees per pay period. It was out of control. We had trouble finding people.” After hiring a consultant, he discovered his per-employee turnover cost was $3,500.
Coca-Cola Retailing Research Council $3,637.00 A major study of the employee turnover problem in the supermarket industry estimated total direct and indirect costs of replacing a supermarket cashier earning $6.50 per hour was at least $3,637.
American Management Association $4,000.00 The cost of hiring and training a new employee can vary from 25 percent to 200 percent of annual compensation. Costs include customer service disruption, emotional costs, loss of morale, burnout/absenteeism among remaining employees, loss of experience, continuity, and “corporate memory.”
American Hotel and Motels Association $4,100.00 “Well-known industry figures of $2,500 for direct and $1,600 for indirect turnover costs per departing employee.”
American Management Association $4,800.00 30 % of annual salary.
U.S. Department of Labor $5,333.00 According to the U.S. Department of Labor, it costs one-third of a new hire’s annual salary to replace them. Direct costs include advertising, sign on bonuses, headhunter fees and overtime. Indirect costs include recruitment, selection and training and decreased productivity while current employees pick up the slack.
Cornell University Hotel School $5,688.00 Front desk Employee – Hotel – Miami
Legislative Update, Alaska State Senator Kim Elton $8,000.00 Hiring and training a new employee can cost from 50 to 200 percent of the position’s annual salary.
Hay Group study $8,000.00 the cost of replacing workers range from six months of an hourly worker’s salary to 18 months salary of a professional employee.
Workforce Magazine – FAX Facts Survey on Employee Turnover $10,000.00 45% of responding companies indicated that turnover costs are more than $10,000 per employee.
Cornell University Hotel School study $11,609.00 Front desk Employee – Hotel – NYC
Saratoga’s Human Resource Financial Report $16,000.00 Average turnover cost equals one year’s salary and benefits. This can vary widely depending on industry, with costs much higher for retail.
Louisiana State University Staff Senate $25,000.00 Protective services includes police officers, correction staff, guards, Wildlife and Fisheries employees. They face adversities which create high turnover rates. Turnover costs are about $25,000 per vacancy.
Average Turnover Cost, $8.00 /HR Employee: $9,444.47
Avg turnover costs, $8.00 an hour employee, using only the lowest 10 of 15 estimates: $5,505.80

Download Turnover Calculation Spreadsheet

Turnover Calculation

Note: Formula for monthly turnover rate is the number of employes separated during the month divided by the average number of employees in the month multiplied by 100
Please fill the fields below, fields on the right hand will be automatically calculated with the values of the first and second fields.
Number of Employees Separated During MonthAverage Number Employees During MonthTurnover Rate (Monthly)
January
February
March
1st Quarter
April
May
June
2nd Quarter
July
August
September
3rd Quarter
October
November
December
4th Quarter
Annual