Q. How do you calculate the cost of turnover?
A, The following areas should be considered in calculating the cost of turnover:
Cost of Exiting Process: Metric includes management and HR time to process an employee’s termination, including the time to conduct an exit interview if applicable.
Cost of Hiring Replacement: Metric includes advertising costs, agency/external recruiter costs, travel costs, relocation costs, referral bonuses, and internal recruiter costs.
Cost of Replacement Employee: Metric includes cost of new hire orientation, training costs, and cost of lost productivity/revenue while the position was vacant as well as the time it takes the replacement employee to become proficient at the job.