Employee turnover cost
employee_turnover_costEstimate what employee turnover costs a company per year, and how much cutting turnover would save. Use it when you know headcount, average salary and the annual turnover rate and want the dollar cost of people leaving. Use employee_turnover_rate instead to work out the turnover rate itself from headcounts and leavers, and cost_of_a_bad_hire for the cost of one specific failed hire. Returns departures per year, cost per departure, total annual cost and the yearly saving from a given cut in turnover. Same formula as the TeamPredict turnover cost calculator.
Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| employees | Yes | Number of employees (headcount), a whole number from 1 to 1,000,000. | |
| average_salary_usd | Yes | Average annual salary per employee, in US dollars. For example 70000. | |
| target_reduction_points | No | Percentage points of annual turnover you want to cut, for the savings figure. Capped at the turnover rate. Default 3. | |
| annual_turnover_rate_percent | Yes | Share of employees who leave in a year, as a percentage from 0 to 100. 15 means 15%. | |
| replacement_cost_percent_of_salary | No | What replacing one person costs, as a percentage of their annual salary. 50 means half a year of pay, which is the calculator's default; published estimates range from about 30 to 200. |
Output Schema
| Name | Required | Description | Default |
|---|---|---|---|
| inputs | Yes | The inputs as used, with defaults filled in. | |
| results | Yes | The computed numbers. Unavailable numbers are null. | |
| summary | Yes | One or two plain sentences with the headline numbers. | |
| calculator_url | Yes | The TeamPredict calculator page that shows the same calculation, where a person can change the inputs. |