Online Assessment Tools 
Calculate the Cost of Turnover 
High turnover can sabotage
your company's bottom line. To estimate the cost of turnover in your
organization, use the following formula:


Select a department or job function that has a lot of turnover.
Enter the annual wages of
the employees who left below. 

Annual Wage:  
 
Total Number of Employees Who Left:  


Total Cost of Turnover: 
Here's an example: 

1.  Annual wage: $35,000 x .25 = $8,750 
2.  Annual wage: $35,000 x .30 = $10,500 x .25 = $2,625 
3.  Total turnover cost per employee: $8,750 + $2,625 = $11,375 
4.  Total number of employees who left: 10 
5.  Total cost of turnover: $11,375 x 10 = $113,750 
Source: Saratoga Institute and KepnerTregoe Inc. 
12 Landscape Lane 