Employee Turnover rate calculator is a free excel template with predefined fields and formulas. Using this template you can easily and instantly calculate Turnover Cost per employee and Estimated Turnover Cost per year for a particular department.
This template can be useful for small business owners, HR Assistants, HR Personnel and professionals. This blog post will help you understand the overall concept around employee turnover rates, how to compute it and how to use the excel template provided herein.
What is Employee Turnover Rate ?
Employee turnover rate is the percentage of employees leaving the company during a specific time and is the post is then replaced by the company. These turnovers usually occur due to promotions, transfers, voluntary resignations, dismissals, retirements etc.
Employee turnover cost is computed by taking your empty or vacant position coverage cost plus cost to fill the vacant position plus onboarding & orientation costs plus the productivity ramp up cost multiplied by the number of employees lost in that position in a given year multiplied by 12 to give you your annual rate.
We will discuss the above formula in brief below with respect to the template provided in this blog post.
What Are Employee Turnover Costs ?
Tangible an Intangible cost involved in replacing an employee or employees are called Employee Turnover Costs. These costs include the final settlement of the employee, filling a position, training etc.
Turnover not only causes a loss in terms of productivity but has a huge impact on companies financial and operations. Many unseen and unaccounted expenses are there which directly impact on the company’s budget.
These unseen and unaccounted costs include the cost of covering the vacant post, the cost of loss of productivity of leaving employee and the Cost of productivity of the new employee. Usually, these costs aren’t taken into consideration.
How To Use this Employee Turnover Cost Calculator excel template ?
Employee Turnover Cost Calculator template has many fields but broadly, consists of 6 sections. Each section introductory brief is given below –
- Benchmark Employee Costs – Benchmark employee costs mean the total compensation of the departed employee. Divide these compensations into daily and monthly rates. This will help us to accurately define the costs till the position remains empty.
- Vacant Position Coverage Costs – The post of the employee remains vacant until the new employee joins the organization. Thus, the workload is either distributed to other employees or remains undone.
- Cost To Fill – When an employee leaves, you need to recruit another employee at his place. This is a complete process starting from receiving the applications to employee joining the organization.
- Training Costs – Just enter the cost of trainer per day and the number of training days and the total training cost will be displayed.
- Productivity Ramp Up Costs – When a new employee joins, initially for 60-90 days he is in the learning process. Thus he doesn’t give 100% productivity as the previous employee. A study shows that he gives 50% productivity. It is called productivity ramp up.
- Turnover Calculations – Turnover Cost Per employee is the total of A+B+C+D+E whereas the estimated turnover cost per year is the number of turnovers per year multiplied by the Turnover cost per employee.
Download and use employee turnover cost calculator excel template
To download and use this free employee turnover cost calculator excel template, follow the steps below –
- You should have Microsoft Office/ Microsoft Excel installed in your system.
- After installing Excel or Spreadsheet, download the zip file of this template, extract the template using WinRAR or 7Zip decompressing software.
- Once extracted, you can open the file using Excel and start entering data or customizing the template.
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