Susan Prince, HR.BLR.com managing editor, commented on employee turnover’s impact: “The cost of replacing an employee is usually estimated to be one-third of his or her annual salary. Although that ratio varies by employer and position, the expense is significant every time an employee walks out the door.”
Expertise, Secrets, Talent Lost Every Day Turnover expenses include lost time for the HR and hiring managers engaged in the recruitment process, along with costs for advertising, lost customers, productivity, temporary staff, and overtime. Prince, however, highlighted the flip side: “One of the greatest single impacts that a human resource manager can have in an organization is to reduce its turnover costs.”
Free Employee Turnover Cost Calculator HR managers will find Business & Legal Reports Inc.’s new turnover calculator to be particularly useful in quantifying the problem of replacing key employees. It will also help justify HR’s initiatives to reduce turnover. This worksheet calculates the cost of turnover for a single vacancy. It takes more than 20 separate factors into account – including interviewing costs, advertising expense, pre-employment testing, reference checks, training, etc. Results are broken out by HR, Department, and Total Company.
To download a free copy of the Employee Turnover Cost Calculator, go to http://www.blr.com/landingPR/handler.cfm?source=PRS&effort=103
In addition to this and 6 other HR calculators, HR.BLR.com offers fast access to detailed federal and state analysis on more than 200 HR topics, from absenteeism to workers’ compensation. At each step of the way visitors have 1-click access to thousands of PowerPoint® meetings, quizzes, checklists, forms, and policies. BLR’s InstantHRAnswers™ also provides an online, interactive database with answers to thousands of specific human resource compliance questions.
About BLR Based in Old Saybrook, Conn., BLR publishes books, newsletters, and Web products serving professionals in human resources, compensation, safety, and environmental management. For a free catalog call 1-800-727-5257 or visit www.BLR.com.