Bridging the Generation Gap: How to Get Radio Babies, Boomers, Gen Xers and Gen Yers to Work Together and Achieve More

Feature: Bridging the Generation Gap: How to Get Radio Babies, Boomers, Gen Xers and Gen Yers to Work Together and Achieve More

Bridging the Generation Gap: How to Get Radio Babies, Boomers, Gen Xers and Gen Yers to Work Together and Achieve More
Worksheet: calculating turnover costs

Worksheet: Calculating Turnover Costs

Turnover Ratio: The number of employees who left, divided by the average number employed per year.
Separation Costs
Interviewer’s time (hours spent x hourly rate*)	$
Terminated employee’s time (while on payroll: hours spent x hourly rate)	$
HR administrative functions (terminated paperwork: hours spent x hourly rate)	$
Separation pay	$
Total separation costs	$
*Include benefits in the hourly rate.	$

Replacement Costs
Advertising	$
Internal communications (development time x hourly rate)	$
Interview time (hours spent x hourly rate for interviewer)	$
Administrative functions (typing, copying: hours spent x hourly rate)	$
Applicant testing (such as validated aptitude tests)	$
Applicant travel expenses	$
Applicant relocation expenses	$
Total replacement costs	$

Training Cost
Employee workbooks (printing + time for development x hourly rate)	$
Orientation(s) (new employee time + staff time x hourly rates)	$
On-the-job training (employees’ time x hourly rates)	$
Total training costs	$

Separation + Replacement + Training =	$
Per Employee Cost
(total costs ÷ number left in the company) =	$
Source: Bridging the Generation Gap, by Linda Gravett and Robin Throckmorton (The Career Press, 2007)