40,000 currency units is the example result. Read it using the units and relationship stated below.
Employee Turnover Cost uses departures requiring replacement, recruiting cost per replacement, training cost per replacement.
Reading capacity and cost without hiding the workload
For employee turnover cost, the relationship is Estimated turnover cost = departures requiring replacement × (recruiting cost + training cost + disruption cost per replacement). Each cost component uses the same currency. The amount depends on the supplied departures requiring replacement, recruiting cost per replacement, rather than a live market price or a value imported from another record. A staffing plan needs available hours and the portion of those hours that can serve the intended work. Paid time, productive time and billable time are separate definitions. Recruiting, training and supervision can change the cost of a role.
What the model includes
Estimated turnover cost = departures requiring replacement × (recruiting cost + training cost + disruption cost per replacement). Each cost component uses the same currency. Use one team and one reporting period. Headcount measures should distinguish people from full-time equivalents; hour-based models should state the expected schedule. A temporary absence and a permanent vacancy have different operating consequences. Review the result with the work queue and service commitment. A high utilisation percentage can signal limited room for urgent work, rather than a reason to add more demand immediately.
Example with the supplied inputs
Departures requiring replacement: 8; Recruiting cost per replacement: 1500; Training cost per replacement: 1000; Estimated disruption cost per replacement: 2500. Result: 40,000 currency units. The values are illustrative.
Compare one changed input
Departures requiring replacement changes from 8 to 8.8. The result becomes 44,000 currency units. All other inputs remain fixed.
Calculation rule
Estimated turnover cost = departures requiring replacement × (recruiting cost + training cost + disruption cost per replacement). Each cost component uses the same currency.
Inputs and output
| Input | Example value | Entry convention |
|---|---|---|
| Departures requiring replacement | 8 | Use the source quantity represented by departures requiring replacement. Keep the counted population fixed and avoid mixing a unit value with a period total. |
| Recruiting cost per replacement | 1500 | Use recruiting cost per replacement on the currency and period basis shown by the formula. Keep gross amounts, net amounts and unit amounts distinct; the page does not fetch a price or exchange rate. |
| Training cost per replacement | 1000 | Use training cost per replacement on the currency and period basis shown by the formula. Keep gross amounts, net amounts and unit amounts distinct; the page does not fetch a price or exchange rate. |
| Estimated disruption cost per replacement | 2500 | Use estimated disruption cost per replacement on the currency and period basis shown by the formula. Keep gross amounts, net amounts and unit amounts distinct; the page does not fetch a price or exchange rate. |
Output: 40,000 currency units is the example result. Read it using the units and relationship stated below. Unit: currency units.
How to use the page
Collect the inputs
Gather Departures requiring replacement, Recruiting cost per replacement, Training cost per replacement. Use one period and the units shown in the form.
Run the calculation
Enter the values and select the action. The calculation rule above explains how the inputs produce the result.
Compare a scenario
Change Departures requiring replacement on its own, keeping the other inputs fixed. Read both results before changing another assumption.
Worked example
With the example inputs listed above, the result is 40,000 currency units.
Change Departures requiring replacement from 8 to 8.8 while keeping every other value fixed. The result becomes 44,000 currency units. This comparison isolates that input; it does not forecast how other variables will respond.
Check the stated formula, units and limits before using the result in a decision.
Keep the displayed formula, input units and model scope with the result. Corrections or questions can be sent through the request section on this page.
Content updated: October 11, 2026