Cost Turn Over Calculator

Enter your cost information below to calculate your next hire.

This is the content of the test Turn Over Calculator

spacePerson 1Person 2Person 3
1. Total costs in hiring the person
  • Recruitment/search fess (any guarantee? If so, was money recovered?)
  • Outside testing, interviewing, record checking, physical exam, drug test, background check
  • HR department -wage x hours for reviewing resumes, phone interviews, in person interviews - for all candidates)
  • Travel costs (for all candidates, spouses, other executives traveling to meet candidate)
  • Time/expenses of non HR people participating in process (all candidates)
  • Relocation (moving household goods, purchasing house for candidate)
2. Compensation: (sum for all years person was in job)
  • Base ($__________ x number of years)
  • Bonuses ("signing," performance, etc.) for all years
  • Stock options (realized for all years), benefits, car
  • Other forms of compensation - benfits, tool allowance etc.
3. Maintaining person in job: (sum for all years person was in job)
  • Administrative assistant for all years
  • Office/vehicle "rental" for all years
  • Furniture, computer, equipment (mobile phone), travel for all years
  • Training - remember to include inhouse training - hours x wage of trainee and trainer
4. Total severance:
  • Severance fee (salary, benefits, use of office), lawyer fees
  • Outplacement counseling fee - HR department
  • Costs in unemployment or lawsuits caused by the person.
  • Administrative costs is separation, wasted time of people in separation
  • "Bad press" (loss of corporate good will, reputation)
5. Mistakes/Failures (missed and wasted business opportunities)
  • Loss company revenue while replacement ramps (applies to sales reps or selling techs).
  • drove a key customer away
  • impaired customer loyalty
  • mis-hired three people at total cost of $2.3M (applies to a manager)
  • wasted $700K on software that had to be scrapped (applies to a manager)
6. Disruption (Costs of inefficiency in the organization)
  • lower morale, lower productivity
  • impaired teamwork
7. SUM OF ALL COSTS (#1 through #6)
8. Estimated Value of their Revenue Contribution
9. NET COST OF MIS-HIRE (#8 - #9)
10. AVERAGE COST OF MIS-HIRE

Send your calculations to the Results Group.