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Bridging the Generation Gap How to Get Radio Babies, Boomers, Gen Xers and Gen Yers to Work Together and Achieve More

February 7, 2008
Related Topics: Retention, Featured Article
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Worksheet: Calculating Turnover Costs

Turnover Ratio: The number of employees who left, divided by the average number employed per year.
Separation Costs
Interviewer’s time (hours spent x hourly rate*)$
Terminated employee’s time (while on payroll: hours spent x hourly rate)$
HR administrative functions (terminated paperwork: hours spent x hourly rate)
Separation pay
Total separation costs
*Include benefits in the hourly rate.
  
Replacement Costs
Advertising$
Internal communications (development time x hourly rate)$
Interview time (hours spent x hourly rate for interviewer)$
Administrative functions (typing, copying: hours spent x hourly rate)$
Applicant testing (such as validated aptitude tests)$
Applicant travel expenses$
Applicant relocation expenses$
Total replacement costs$
  
Training Cost
Employee workbooks (printing + time for development x hourly rate)$
Orientation(s) (new employee time + staff time x hourly rates)$
On-the-job training (employees’ time x hourly rates)$
Total training costs$
  
Separation + Replacement + Training =

 $

Per Employee Cost 
(total costs ÷ number left in the company) =

$

Source:Bridging the Generation Gap,by Linda Gravett and Robin Throckmorton (The Career Press, 2007) 
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