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How To Calculate Employee Turnover?


Calculating Cost per Employee:

The Employee turnover cost is defined as the Percentage of A nnual Salary, including the other cost benefits given to an employee. It can be calculated using the formula:

Turnover Cost = Hiring Cost + Training Cost + Learning Curve Loss Cost + Termination / Separation Cost + Vacancy Cost

The following questionnaire can help in capturing the details to calculate your employee turnover cost.

Exit Interviews

1. Do you conduct exit interviews? {If no, please go to question 4}
2. Who is typically involved in an exit interview? {Please include the number of individuals involved and their titles/position}
3. How long does a typical exit interview usually last? Administrative tasks
4. What types of administrative tasks are associated with an employee leaving the organization? {Ex. processing records, security, payroll, benefits; Notice Period}
5. How many individuals are typically involved in completing the administrative tasks associated with a teacher leaving? What are their titles/positions?
6. How much time does it take for ALL administrative tasks to be completed?


7. In what ways do you advertise openings for a new / replacement positions? {Newspaper, Internet, etc.}
8. Do you usually advertise for multiple positions at the same time? If so, in a typical year, how many positions do you advertise for at one time?
9. What types of advertising costs do you typically encounter when trying to recruit for a position? {Please provide cost estimations for each category of advertising costs} Recruiter
10. Do you use recruiters in trying to find qualified candidates? How many recruiters do you employ? {If none, please go to question 15}
11. What types of activities will a recruiter typically perform?
12. Is this recruiter paid on a consulting or salary basis?
13. If salaried, what is the salary range for a recruiter? If consulting, what is the typical consulting fee?{If consulting, please specify the amount of the recruiter’s time associated with the consulting fee.}
14. In a typical year, how many new teachers does the recruiter recruit? How many will actually be hired?


15. Do you pay any travel costs (either for the recruiter or the applicants) during the hiring process?
16. If so, what is the average per position? Processing applicants
17. How do you process applications and resumes?
18. Who handles this task? {Please specify the number of individuals involved and their titles/positions}
19. How much time is associated with processing applications/resumes?
20. What types of background checks do you perform on prospective employees?
21. Who is involved in this task? {Please specify the number of individuals involved, and titles/positions}
22. How many background checks do you typically conduct for a single position?
23. How much time is associated with conducting background checks on a single applicant?


24. How many interviews do you typically conduct for a vacant position? Do you ever conduct multiple interviews with the same applicant?
25. Who usually conducts these interviews? {Please specify the number of individuals involved and their titles/positions}
26. How much preparation time do interviewers usually need for these interviews?
27. How long do these interviews typically last?
28. Once interviews have been conducted, how do you choose which applicant to extend an offer to?
29. Who is involved in this selection process? {Please specify the number of individuals involved and their titles/positions}
30. How long does the selection process typically last?


31. Does you district belong to an electronic co-op which does the screenings and qualifying of applicants? {If not, please go to question 35}
32. What are the costs associated with belonging to this co-op?
33. How does this co-op work? What steps does it eliminate in the hiring process?
34. How many positions in a typical year does your organization hire from the co-op pool? Stipends and bonuses
35. Does your organization pay stipends to employees assigned to shortage areas (niche talent / expertise employees)?
36. In the past year, what percentage of such employees who received niche expertise stipends?
39. Does your organization pay other bonuses to new employees?
40. In the past year, what percentage of new employees received other bonuses?

Post-employment tasks

41. What types of administrative tasks must be completed after a candidate is hired? {Ex. establishing payroll, security, benefits, computer passwords, email; dissemination activities} 42. Who is involved in these tasks? {Please specify the number of individuals involved and their titles/positions}
43. How long does it typically take for these administrative tasks to be completed?


44. What types of fresher support activities (Induction Plan) do you offer new joiners? {If none, please go to question 47.}
45. How many new joiners attend these activities in a year?
46. Who is involved in conducting these activities? {Please specify the number of individuals involved and their titles/positions}
47. What type of time commitment is usually required of the individuals involved? {Other than the fresher’s}
48. Are new joiners given any orientation materials? If so, what are the costs associated with the materials for EACH of them?


49. How is your organization assisting employees with the new requirements for professional development training associated with certification?
50. For employees in their first year in the company, how much professional development will you organize? {In terms of cost for training, training materials}
51. How many days are the new joiners don’t attend work due to professional development training?

The following table can help in capturing the data to calculate the turnover cost

Turnover Cost Calculations

The following rules are used in all calculations of turnover cost. If any calculation deviates from these rules, a footnote describes the rule used for the calculation. Sources of information are also noted.

  • Estimations of time for the interview: - If multiple individuals are involved in a task, the reported time is divided evenly among all individuals involved.
  • Stipends, other bonuses and costs are computed for the amount invested in the resigned / terminated employee and the amount provided to new joiners filling the vacant positions.

Turnover Cost Calculations

Time on Task
Employees Involved in the process
Cost per Year
Exit Interview Minutes per individual    
Grade – A      
Grade - B      
Separation Administration cost Hours per resignation    
Grade – A      
Grade – B      
Ad Cost      
Recruitment Cost      
Processing Applications      
Position – A      
Position – B      
Reference Checks      
Position – A      
Position – B      
Position – A      
Position – B      
Post-employment Admin Tasks      
Grade – A      
Grade - B      
Grade – A      
Grade - B      
Other Bonus      
Grade – A      
Grade - B      
Grade - A      
Grade – B      
Grade - A      
Grade – B      

The final turnover cost can be obtained, by adding up all these costs.


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