| Separation Costs: |
|
| Cost of exit interviewer's time— 1hr. @ 18.00/hr. |
$18.00 |
| Cost of terminating employee's time— 3hrs. @ $14.42/hr. |
43.26 |
| Cost of administrative functions related to termination—2hrs. @ $12.00/hr. |
24.00 |
| 1 week's separation pay |
576.80 |
| 1 week's vacation pay |
576.80 |
| Increase in unemployment tax |
412.87 |
| Vacancy Costs: |
|
| Cost of 60 hours' additional overtime @ $21.63/hr. |
1297.80 |
| Cost of 20 hours' additional temporary help @ $25.50/hr. |
510.00 |
| Less 3 weeks' wages and benefits saved due to vacancy |
(1730.40) |
| Replacement Costs: |
|
16 hours of pre-employment administrative expenses @ $15.00/hr.
|
|
Cost of 1 L.A. Times ad, 10 lines @ $54.00/line
|
|
Screening costs—5 hours @ $18.00/hr.
|
|
Cost of 5 entrance interviews @ $18.00/hr.
|
|
Testing costs
|
|
Cost of 2 second interviews @ $18.00/hr.
|
|
Reference checking—5 hours @ $18.00/hr.
|
|
Staff costs for a 60-minute meeting for 3 @ $18.00/hr.
|
|
Travel and moving expenses
|
|
4 hours' post-employment information gathering and dissemination costs @ $18.00/hr.
|
|
| Cost of employment medical exams |
100.00 |
| Training Costs: |
|
Cost of informational literature
|
|
Formal training costs/orientation
|
|
| On-the-job training costs—16 hours @ $25.00/hr. + 16 hours @ $14.42/hr. |
630.72 |
| Performance Differential: |
|
| Salary differential, vacancy lag and learning curve—80 hours @ $14.42/hr. |
1153.60 |
| Total Turnover Cost for One Employee |
$5550.45 |
Taken from "How Much Does Your Employee Turnover Cost?," an article by William H. Pinkovitz, Joseph Moskal and Gary Green, University of Wisconsin. |
