Categories: HR

Calculating Employee Turnover

I have Attached Calculating Employee Turnover in Excel Format

Employee Turnover Calculator
Position: Sales Executive	Salary Level: Rs.4000/-
Hiring Costs
Direct Costs to hire 1 new employee
Advertising		4,400
Average fee to employment agencies, placement firm		–
Sign-on-bonus		–
Referral bonuses to other employees		–
Travel and Expenses (include yours and money you reimburse to prespective candidate)		–
Other Direct Costs (Uniform Expenses, Name Tag)		600
Total Direct Costs to Hire		5000
Indirect Costs to hire 1 new employee
Interviewing (costs of current employees at all levels of interviewing, from initial phone call through final interviews)		12
Checking References		10
Lost Revenue (include costs of time spent away from actual jobs)		12
Miscellaneous indirect Costs (phone, copy, fax)		10
Total Indirect Costs to Hire		44

Training Costs
Direct Costs to train 1 new employee
Time spent by person/people directly responsible for training new hire to do job.		5000
(i.e. Cost per hour times number of hours)
Cost per participant of general training programs, training materials, seminars for new hires		3000
Travel and expenses per participant for above		–
Other direct costs		–
Total Direct Costs to train		8000
Indirect costs to train 1 new employee
General training in Company		–
On-the-job training costs before employee becomes fully productive		24000
Total indirect costs to train		24000
Estimated Revenue Lost by Vacant Position		225000
TOTAL COSTS: SINGLE EMPLOYEE		37044
Annual Cost of Employee Turnover
To Calculate the annual cost of employee turnover, multiply the cost of replacing 1 employee times the number of replacements each year.
i.e. 37044 X 4 = Rs. 1,48,176 /- (the amount represents total cost against 4 replacements in a year)