I have Attached Calculating Employee Turnover in Word Format
FACTORS INVOLVED IN CALCULATING “EMPLOYEE TURNOVER”:-
- Advertising : The details of Advertising Expenses for Financial Year 2010-11 are:-
|1.||12/01/2011||Lokmat Main Issue||19,909/-|
|2.||25/01/2011||Dainik Bhaskar Main Issue||1806/-|
The amount taken is rounded i.e.Rs.22,000/- for posts of suppose 5 sales executive requirement. Therefore, 22000/5 = Rs.4,400.
- 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).
- 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).
- Checking reference: Approximate Rs. 10 is taken on sheet (Phone call charges and the time spent against it).
- Lost Revenue: It includes cost of time spent from actual jobs. Hence it includes the same cost as point no.4.
- Miscellaneous indirect cost : it includes the cost incurred on phone call, Xerox, Fax) : Approximate Rs.10 is taken.
- 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).
- 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.
- 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/-.
I have Attached Calculating Employee Turnover in Excel Format
|Employee Turnover Calculator|
|Position: Sales Executive||Salary Level: Rs.4000/-|
|Direct Costs to hire 1 new employee|
|Average fee to employment agencies, placement firm||–|
|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|
|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|
|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)|