The first thing you need to do to address your turnover situation is to quantify the problem. This helps you to not only realize the extent of the problem, but to also measure the return on investment with any retention strategies you implement.

Unwanted employee turnover costs employers much more than typically realized. While the actual losses will differ from one work category to another, the KEi auto calculator is a reasonably accurate way to estimate your employee turnover costs.


To get precise, you can identify these exact costs when nonexempt employees leave:

Separation Processing Costs	$
Replacement Hiring Costs	$
Training New Hire Costs	$
Lost Productivity & Lost Business Cost.	$
Total	$ __________     per lost employee

Turnover costs differ depending upon the position. There are three work categories to consider - Nonexempt, Exempt, and Executives. Nonexempt employees are those generally in hourly paid work categories covered by the Federal Wage and Hour laws governing hours of work and overtime pay eligibility. Exempt employees are professionals, supervisors and managers who are exempt from wage and hour regulations. Executives are top management.

The loss of each nonexempt employee can cost between 0.25X and 0.5X the salary plus benefits.

The cost of losing an employee who is "exempt" from wage and hour regulations is even greater. This loss can be determined by multiplying the annual salary plus benefits total by 1X to 1.5X depending on the level of the position. The higher the position, the higher the multiplier.

For top management employees, use multiples between 3X and 5X the annual salary plus benefits.

To calculate what turnover is costing you:
Click below to automatically calculate your actual turnover cost.

Each formula multiplies by the number of annual employee departures to determine a total turnover cost for the work group that you select. Your total cost figure becomes the target of controllable turnover costs to be significantly reduced.

Automatically calculate your turnover costs

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