Separation Processing Costs:
+  cost of exit interviewer's time     (60 minutes @ $16 x 135%)	$22.00
+  cost of departing employee's time     (30 minutes @ $20 x 135%)	$14.00
+  cost of administrative functions relating to the departure     (2 hours @ $14 x 135%)	$38.00
+  cost of separation pay associated with the departure     (40 hours @ $20)	$800.00
+  cost of unemployment tax related to the departure     (assumes account reimbursement of 4 weeks @ $337)	$1,348.00
Replacement Hiring Costs:
+  cost of attracting applicants     (annual ad budget / number of positions filled)	$500.00
+  pre-employment administrative expenses     (3 hours @ $24 x 135%)	$98.00
+  cost of entrance interviews     (5 interviews @ 1 hour x 2 interviewers @ $30 x 135%)	$405.00
+  cost of aptitude, skill, drug etc. testing     (30 minutes @ $14 x 135% + $16 + $25)	$51.00
+  cost of hiring decisions meetings     (1 hour x 2 interviewers @ $30 x 135%)	$81.00
+  cost of post employment physical exams     (assumes performed in house)	$50.00
+  post-employment information gathering (records, payroll, etc.)     (1 hour @ $14 + 1 hour @ $20 x 135%)	$46.00
+  cost of signing bonus     (RN's in Denver area currently ranging from $1K - $3K)	$1,000.00
+  cost of employee finder's fee     (Denver area currently ranging from $500 - $1K)	$500.00
Training New Hire Costs:
+  cost of information literature (manuals, brochures, policies, etc.)	$10.00
+  cost of general orientation     (16 hours @ $20 + 16 hours @ $16 x 135%)	$778.00
+  cost of job orientation     (unit orientation 80 hours @ $20 + 40 hours @ $25 x 135%)	$3,510.00
Lost Productivity and Lost Business Costs:
+  cost of additional overtime to cover the vacancy     (20 hours @ $30 x 135% x 6 weeks)	$4,860.00
+  cost of additional temporary help     (20 hours @ $37 x 6 weeks)	$4,440.00
-  wages and benefits saved due to the vacancy     (40 hours @ $20 x 135% x 6 weeks)	<$6,480.00>
+  cost of performance differential while new employee gets up to speed     (96 hours @ $20 x 135% x 20%)	$519.00
+  cost of low morale-related time wasted due to "water cooler grumbling"     (1 hour @ $20 x 135% x 5 days x 6 weeks)	$810.00
+  cost of lost customers, sales, profits due to the departure     (gross profit loss per patient $3,100 per day x 3.5 days x 25% profit margin)	$2,713.00
+  cost of additional employee departures related to the departure     (if just one other nurse leaves, the cost is equal to the total of these costs)	$16,113.00
Total	$32,226.00
At $20.00 per hour plus 35% benefits cost, this turnover cost calculation represents 57% of the annual total compensation for the Registered Nurse position. ($20 x 2080 hours x 135% = $56,160. . . $32,226 / $56,160 = 57.4%)