Employee Turnover Cost Calculator


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Some employee turnover is natural, and often beneficial. It can bring fresh ideas, diversity, and new skills relevant to your evolving organisation. However, high turnover rates are often indicative of low employee satisfaction. Managing turnover rate is a business-wide activity, with business-wide implications.

Many businesses calculate employee turnover rate while not understanding the cost of turnover to their organisation. Understanding the resources invested into an individual joining and subsequently leaving your business can influence your future decision making.

The ideal rate of employee turnover for most industries is 10-15%. Our client case study identified turnover costing more than £300,000. Large turnover rates are concerning of course, but low turnover rates can be equally problematic. Employee turnover impacts your business in many ways:

  • Financial implications and increased operating costs
  • Inability to capitalise on growth opportunities and expanding markets
  • Cultural fragmentation. 

Disengagement is heavily linked with employee turnover and can be caused by a number of problems. Understanding these issues is central to managing your employee turnover rate, then you can make necessary changes.

  • Recruit the right people - do not accept mediocrity as a quick fix. You will only end up spending more money when your disengaged employee leaves their position. Recruit contributors into your business who share your cultural values and have the technical ability to be successful.
  • Clearly define roles and expectations - turnover occurs when expectations aren't met. Be clear about responsibilities, evaluation and expectation. Then provide a clear path for success.
  • Culture management - understand why good employees enjoy working for your business, and build on those aspects.
  • Human connection - Employees leave teams and organizations when they no longer feel a positive emotional connection to the company. Leaders can reconnect with their employees by communicating how their roles add value and letting them know they matter.
  • Invite feedback - find out what's working and what isn't working. Give yourself the opportunity to address issues before employees feel they need to move on.
  • Cultivate a culture of respect, and prioritise employee happiness.


Access our user-friendly, modifiable spreadsheet to calculate the cost of employee turnover and take the first step in reaching your optimum employee turnover figures. 



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Wednesday, 19 January 2022

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