Calculating Employee Turnover

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  1. Advertising : The details of Advertising Expenses for Financial Year 2010-11  are:-
Sr .No. Date Particulars Amt
1. 12/01/2011 Lokmat Main Issue 19,909/-
2. 25/01/2011 Dainik Bhaskar Main Issue 1806/-
Total Rs.21,715/-


The amount taken is rounded i.e.Rs.22,000/- for posts of suppose 5 sales executive requirement. Therefore, 22000/5 = Rs.4,400.


  1. Other Direct Costs : It will include Uniform Expenses i.e. Rs.260/- per Salwar Suit and Name Tag Rs. 20/- per head. Hence the cost against one employee comes out to be:-

= 260 *2 +20 = Rs. 540/- (approximate Rs.600/- is taken on sheet).


  1. Interviewing (costs of current employees at all levels of interviewing, from

initial phone call through final interviews)


The cost of HR Manager is taken as she is involved in the recruitment process. Her salary is Rs.8000/- per month for 10 hrs duty.  The interview timing is from 11 to 1 and 4 to 7 i.e. 5 hrs each day. The Walk-ins are for 3 continous days. Hence, the calculation comes out to be;

= 8000/26 = 308 per day for 10 hrs (i.e. for 5 hrs )= 308*5/10=Rs.154/- per

day. = Rs.154*3 days = Rs. 462/- per day = 462 / 10*60 = 0.77  Rs. per min *15 = 11.55 Rs (approximate Rs. 12  is taken on sheet).


  1. Checking reference: Approximate Rs. 10 is taken on sheet (Phone call charges and the time spent against it).


  1. Lost Revenue: It includes cost of time spent from actual jobs. Hence it includes the same cost as point no.4.


  1. Miscellaneous indirect cost : it includes the cost incurred on phone call, Xerox, Fax) : Approximate Rs.10 is taken.


  1. Time spent by person/people directly responsible for training new hire to do job = Rs.8000/26 = Rs.308/- per day for 10 hrs job. Hence for 1 hr contribution towards training sales executive = 308*1/10 = Rs.31 each day. = 31*26 days = Rs.806 per month. Hence for six months, the amount comes out to be = 806*6 = Rs.4836 (i.e. approximate Rs.5000 is taken on sheet).


  1. Cost per participant of general training programs, training materials, seminars for new hires = Rs. 3000/- (three  modules of training MASTERING PRODUCT, CUSTOMER CONNECT & RACING AHEAD)  i.e. Rs.1000/- per training.


  1. On-the-job training costs before employee becomes fully productive: It will include the six months salary of that sale executive. Rs.4000 times 6 months = Rs.24000/-.

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