The costs of attrition
=
The annual salary of all leavers
Loss of productvity of the individual and the overall impact on the department
+
Cost of training provided to the leaver
Cost of lost knowledge and contacts
+
Cost of recruitment or referral fees (could be 3 months salary)
Lost revenue, sales or goodwill
+
Admin costs of setting on a new starter
Cost of covering the vacant position with temp or other team members
+
Training and induction of new starter
Internal cost of staff replacement; exit interview, leaver process, payroll updates, recruitment ad, cv reviews
+
Productivity lost whilst new starter is learning the role, assume 4-6 months
Attrition cost calculator
Input
Guide
Current attrition rate
Enter your current attrition rate (%)
Total annual salary cost
Enter your annual salary cost (£)
Attrition cost to the bottom line
£1,200,000
Eg a 20% attrition rate will see a cost to the bottom line of 20% of total salary cost
Target attrition rate
Enter your target attrition rate (%)
Revised attrition cost to the bottom line
£1,000,000
Revised cost based on target attrition rate
Potential savings to go straight to the bottom line
£200,000
The costs of a disengaged workforce
Higher level of absenteeism
+
Cost of training provided to the leaver
Disruption to colleagues
+
Higher management costs
Negative impact on customer service
+
Higher level of customer complaints
Engagement efficiency savings calculator
Input
Guide
Current employee engagement level %
%
High
Statistics suggest highly engaged employees are 35% more efficient
Average
Disengaged
Disengaged employees account for approx -20% of the bottom line
Total %
100%
Current net profit
Enter your current net profit
Target employee engagement level %
%
High
Assuming higher engaged employees are 35% more productive
Average
Disengaged
Assuming disengaged employees are -20% productive than average
Total %
100%
Potential increase to your bottom line through higher engagement
£291,971
With lower staff turnover and higher efficiences you could boost your bottom line by….
£491,971
