Let’s take back your salary budget.

Use our calculator to estimate your savings. Results will update as you type.

“I work on a team of . In the past year, left, and we plan on hiring more in the next year.”

Save 20.55% of your annual salary budget by cutting turnover and ramp up by 25%

(At an average salary of $100,000, that translates to $12,843,750 per year)

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Copy this spreadsheet to view a full cost breakdown for your team.

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Here’s the math behind the estimate:

To start, focus on the two biggest people expenses:

The Inputs

To find your turnover and ramp up cost, 3 numbers matter: the average annual salary, the number of employees you replace, and the number of additional new hires.

We’ll also need to make two educated guesses: The replacement cost for each lost employees, and the ramp up cost for each new one.

An Example

Let’s look at an example: a 50-person organization with 16% annual turnover adding 10 people over the next year with a $70,000 average annual salary.

Cost of Turnover

Let’s assume a replacement cost of 9 months’ salary, or 75% of base. At 16% annual turnover the organization can expect to lose about 9 employees over the next year. At a cost/hire of $52,500, turnover costs $472,500 annually.

Cutting turnover by 25% would save $118,125.

Cost of Ramp Up

Let’s assume an average cost to productivity of 50% wasted time over 6 months. Adding in 9 replacement heads, a total of 19 new employees will join in the next year. With 4 weeks paid vacation, the average salary is $1,458/week. That’s a cost/hire of $17,500, or $332,500 annually for 19 new hires.

Cutting ramp up time by 25% would save $83,125.

ROI in Additional Hires

Together, the turnover and ramp up savings total $201,250.

That’s a 28.75% increase in the salary budget of $700,000, enough for 2 additional hires.

Want to learn more?

Onboarding Key to Retaining, Engaging Talent

“One-third of approximately 1,000 respondents to a February 2014 survey said they had quit a job within six months.”

Society for Human Resource Management, Apr. 16, 2015

There Are Significant Business Costs to Replacing Employees

“The estimates of the cost of turnover in the 30 case studies analyzed here range from 5.8% up to 213%, depending on the job and skills.”

Center for American Progress, Nov. 16, 2012

Are Your Star Employees Slipping Away?

“51% of employees say they are actively looking for a new job or watching for openings, and 35% report changing jobs within the past three years.”

Gallup, Feb. 22, 2017

Let’s talk about how we can help cut turnover and ramp up on your team.

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