Job Level

SEPARATION COSTS	1. Exit Interviews (salary & benefits of interviewer & employee) 2. Value of Separation Package, including Post-Employment Salary, COBRA 3. Termination administrative & recordkeeping 4. Increase in Unemployment Tax (marginal rate increase + add tax) 5. Costs of Employee Gap (Lost productivity in other positions from having to "cover" the position, temporary replacement or outsourcing, team gaps, information/knowledge loss) TOTAL	$__________
The single leading cause (85%) of turnover in American corporations - from fast food service through the Fortune 500 - is behavioral incompatability, the inability to appreciate and balance differences between behavioral styles .
RECRUITING & SELECTION	1. Advertising for position (Recruitment agency fees, ads) 2. Pre-employment administrative functions and processing (Clerical, supervisory, managerial time and overhead) 3. Selection Interviews (Time and overhead for multiple candidates) 4. Pre-employment testing and information-gathering (Style, competencies, job fit, integrity, drug testing, background check, references, medical) 5. Meetings to discuss and evaluate candidates (Time, travel, overhead) 6. Initial Benefits (Relocation, hiring bonus, incentives) 7. Post-employment administrative functions and processing (Benefits records, payroll setup, medical exam, etc) 9. Other: TOTAL	$__________
According to the Department of Labor, a single bad entry-level hire will cost you at least $5000-7000.
TRAINING	1. Salary & benefits while in classroom training 2. Salary & benefits while getting up to speed 3. Salary & benefits of classroom trainer 4. Salary & benefits of field trainer or manager 5. Equipment, manuals and materials TOTAL	$__________
Major corporations estimate the cost of mis-hires as between two and four times the person's salary.
LOST PRODUCTIVITY	1. What would you estimate above performance would produce? (Value per unit of production, sales and profits, opportunities, initiative) 2. What do you estimate this employee's performance to have been? TOTAL + or -	$__________
	GRAND TOTAL	$__________

Do You Think Benefits and Compensations are the
Only Way to Retain the Best Employees?

Get Specific Information to Target the Real Problems with Our Culture Vitality Survey
When was the last time you asked ...

Are we doing everything we can to honor our committment to our customers, our company, our work team, other work teams, ourselves?
What do you like and dislike about working here?
If offered a comparable job at another company, what would make you decide to leave? or stay?
What are the factors that make the organization successful?
What are the most attractive features of your job?

Turnover Cost Formula Per Job/Department/Organization

Select a department or job function. Estimate the number of people who left during the year - add to (D) below. The average cost of turnover is 25% of employee's annual salary (A), plus 25% of cost of benefits (B-about 30% of wages).

(A) Annual Wage: $________ x .25 =	$__________
(B) Annual Wage: ________ x .30 = ________ x .25 =	$__________
(C) Total turnover cost per employee:	$__________
(D) Total number of employees who left:	$__________
(E) Total cost of turnover for that job, department or organization:	$__________

What Can I Do About it?

Call us at 404-814-0739 for your free needs consultation! We have a wide range of solutions. Depending on the reasons for your turnover, we recommend the best tools for your turnover solution. Don't let this "phantom expense" cost your organization any more than it has to - we can reduce your turnover and increase morale.