Turnover Cost Calculator Shrm

SHRM Turnover Cost Formula:

\[ \text{Turnover Cost} = (\text{Hiring} + \text{Onboarding} + \text{Development} + \text{Unfilled}) \times (\text{Employees} \times \text{Turnover \%}) \]

Hiring (currency):

Onboarding (currency):

Development (currency):

Unfilled (currency):

Employees (number):

Turnover % (decimal):

Turnover Cost:

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1. What is the SHRM Turnover Cost Formula?

The SHRM (Society for Human Resource Management) turnover cost formula calculates the financial impact of employee turnover on an organization. It considers hiring, onboarding, development, and unfilled position costs multiplied by the number of employees and turnover percentage.

2. How Does the Calculator Work?

The calculator uses the SHRM turnover cost formula:

\[ \text{Turnover Cost} = (\text{Hiring} + \text{Onboarding} + \text{Development} + \text{Unfilled}) \times (\text{Employees} \times \text{Turnover \%}) \]

Where:

\( Hiring \) — Cost per hire (currency)
\( Onboarding \) — Onboarding cost per employee (currency)
\( Development \) — Training and development cost (currency)
\( Unfilled \) — Cost of unfilled position (currency)
\( Employees \) — Total number of employees
\( Turnover \% \) — Annual turnover rate (decimal)

Explanation: The formula calculates the total financial impact of employee turnover by combining various cost components and multiplying by the number of employees affected by turnover.

3. Importance of Turnover Cost Calculation

Details: Calculating turnover costs helps organizations understand the financial impact of employee departures, justify investments in retention strategies, and make informed decisions about HR budgeting and resource allocation.

4. Using the Calculator

Tips: Enter all cost components in currency format, total number of employees, and turnover percentage as a decimal (e.g., 0.15 for 15%). All values must be valid positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What costs are included in each category?
A: Hiring includes recruitment ads, agency fees, interview time. Onboarding includes training materials, orientation time. Development includes training programs, certifications. Unfilled includes lost productivity, overtime costs.

Q2: How accurate is this calculation?
A: The calculation provides an estimate. Actual costs may vary based on industry, position level, and specific organizational factors.

Q3: Should I include indirect costs?
A: The formula focuses on direct measurable costs. Some organizations also include indirect costs like lost institutional knowledge and decreased morale.

Q4: How often should turnover costs be calculated?
A: Typically calculated annually, but can be done quarterly for organizations with high turnover rates or during significant organizational changes.

Q5: Can this be used for specific departments?
A: Yes, the formula can be applied to specific departments, teams, or job roles by using department-specific data for more targeted analysis.