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Assignment 3 - Calculating Turnover Cost

The document calculates the total turnover costs for two positions - a senior level general manager position and a lower level head of department position. For the general manager position, the total turnover cost is $23,496.61. For the head of department position, the total turnover cost is $9,207.41, resulting in a variance of $14,289.20 between the two positions. The calculations consider vacancy costs, separation costs, costs to hire a replacement, training costs for the new hire, and productivity loss costs while the new hire learns the job.

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Shweta Sharma
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33 views

Assignment 3 - Calculating Turnover Cost

The document calculates the total turnover costs for two positions - a senior level general manager position and a lower level head of department position. For the general manager position, the total turnover cost is $23,496.61. For the head of department position, the total turnover cost is $9,207.41, resulting in a variance of $14,289.20 between the two positions. The calculations consider vacancy costs, separation costs, costs to hire a replacement, training costs for the new hire, and productivity loss costs while the new hire learns the job.

Uploaded by

Shweta Sharma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Assignment 3: Calculate turnover costs for two positions in your

organization - A Senior Level Position and a Lower Level Position

Name Shweta Tiwari


SID/Registration ID 102805
Cohort Group 8

DESCRIPTION COST
Total Turnover Cost of General Manager(Senior level Position)* $23,496.61
Total Turnover Cost of Head of the Department(Lower level Position)* $9,207.41
Variance $14,289.20

*For detailed calculation refer to sheet: General Manager and Head of Department
weta Tiwari
TURNOVER COST FOR SENI

CURRENT EMPLOYEE COST


Annual Base Salary
Annual Benefits Cost
Daily Cost (Salary + Benefits)

VACANCY COSTS / LOSS OF PRODUCTIVITY FROM OTHER


EMPLOYEES FILLING IN FOR THE VACANT POSITION

Daily Cost of Covering for the Position


# of Days Position Vacant
Salary & Benefits saved during vacant no. of days
Total Cost to "Cover" Position

SEPERATION COST & COST TO HIRE REPLACEMENT


HR or Hiring Manager's Annual Salary
HR or Hiring Manager Hourly Rate
Departing Employee - Exit Interview Cost for HR Manager
Departing Employee - Exit Interview Cost for Departing Employee
Departing Employee - Other Seperation Costs
New Hire - Resume Screening (Hours)
New Hire - Interviews (Hours)
Total Hours to Fill Position
New Hire - Advertising Cost
New Hire - Assessment Cost
New Hire - Background Check Cost
New Hire - Other Admin Costs
Separation Cost & Cost to Hire Replacement

NEW HIRE TRAINING COST


Training Manager's Annual Salary
Training Manager's Onboarding Daily Rate
Total Training Days Consumed
Other Training Costs
Total New Hire Training Cost

COST OF REDUCED PRODUCTIVITY WHILE NEW HIRE LEARNS THE JOB


Daily Employee Cost
Days to reach 100% Productivity
Productivity Loss Cost

TOTAL COST OF TURNOVER =


(based on 10 day vacancy)

TOTAL COST OF TURNOVER


VER COST FOR SENIOR LEVEL POSITION

COST
$108,000.00
$32,400.00
$546.30

COST

$180.28
10.00
$5,463.04
-$3,660.23

COST
$60,000.00
$29.18
$58.37
$136.58
$5,500.00
25.00
15.00
40.00
$15.00
$125.00
$40.00
$100.00
$7,142.26

COST
$42,000.00
$163.42
5.00
$350.00
$1,167.12

COST
$628.25
60.00
$18,847.47

OVER =
cy)

OVER
FOR SENIOR LEVEL POSITION

NOTES
9000$ monthly
30% of base salary
Based on 257 working days

NOTES

assumed, at 33% of Daily Cost for departing employee

NOTES
5000$ monthly
Based on 257 working days & 8 hrs per day
approx 2 hrs of HR manager consumed
approx 2 hrs of Departing employee consumed
Separation pay including annual leaves pay and departing air ticket
by HR Manager
by HR Manager

2 candidates were assessed

HR department documentation etc


NOTES
3500$ monthly
Based on 257 working days

including training material and other resources

NOTES
Daily Cost of new hire is 15% more compared to the departing employee

Prior to reaching 100%, assuming new hire performs at 50% of replaced employee

[Cost to "Cover" Position + Cost to Hire Replacement + Separation Costs + New


Hire Training Cost + Productivity Loss Cost]

$23,496.61
TURNOVER COST FOR LOW

CURRENT EMPLOYEE COST


Annual Base Salary
Annual Benefits Cost
Daily Cost (Salary + Benefits)

VACANCY COSTS / LOSS OF PRODUCTIVITY FROM OTHER


EMPLOYEES FILLING IN FOR THE VACANT POSITION

Daily Cost of Covering for the Position


# of Days Position Vacant
Salary & Benefits saved during vacant no. of days
Total Cost to "Cover" Position

SEPERATION COST & COST TO HIRE REPLACEMENT


HR or Hiring Manager's Annual Salary
HR or Hiring Manager Hourly Rate
Departing Employee - Exit Interview Cost for HR Manager
Departing Employee - Exit Interview Cost for Departing Employee
Departing Employee - Other Seperation Costs
New Hire - Resume Screening (Hours)
New Hire - Interviews (Hours)
Total Hours to Fill Position
New Hire - Advertising Cost
New Hire - Assessment Cost
New Hire - Background Check Cost
New Hire - Other Admin Costs
Separation Cost & Cost to Hire Replacement

NEW HIRE TRAINING COST


Training Manager's Annual Salary
Training Manager's Onboarding Daily Rate
Total Training Days Consumed
Other Training Costs
Total New Hire Training Cost

COST OF REDUCED PRODUCTIVITY WHILE NEW HIRE LEARNS THE JOB


Daily Employee Cost
Days to reach 100% Productivity
Productivity Loss Cost

TOTAL COST OF TURNOVER =


(based on 25 day vacancy)

TOTAL COST OF TURNOVER


VER COST FOR LOWER LEVEL POSITION

COST
$60,000.00
$9,000.00
$268.48

COST

$26.85
25.00
$6,712.06
-$6,040.86

COST
$60,000.00
$29.18
$43.77
$50.34
$4,438.36
18.00
32.00
50.00
$15.00
$0.00
$25.00
$40.00
$6,071.61

COST
$42,000.00
$163.42
3.00
$350.00
$840.27

COST
$308.75
90.00
$8,336.38

OVER =
cy)

OVER
FOR LOWER LEVEL POSITION

NOTES
5000$ monthly
15% of base salary
Based on 257 working days

NOTES

assumed, at 10% of Daily Cost for departing employee

NOTES
5000$ monthly
Based on 257 working days & 8 hrs per day
approx 1.5 hr of HR manager consumed
approx 1.5 hrs of Departing employee consumed
Separation pay for 27 days of pending annual leaves. Calcutated on base salary.
by HR Manager
by HR Manager

not applicable

HR department documentation etc


NOTES
3500$ monthly
Based on 257 working days

including training material and other resources

NOTES
Daily Cost of new hire is 13% more compared to the departing employee

Prior to reaching 100%, assuming new hire performs at 30% of replaced employee

[Cost to "Cover" Position + Cost to Hire Replacement + Separation Costs


+ New Hire Training Cost + Productivity Loss Cost]

$9,207.41

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