Turnover costs more than a recruiting advertisement. Include recruiter/HR time, background checks, equipment, paid training, trainer time, nesting, supervisor time, vacancy/overtime and lost productivity during ramp.
Replacement Cost Per Agent = Recruiting + Training + Vacancy Cost + Ramp Productivity Loss + Other Replacement Costs
Annual Attrition Cost = Replacements x Cost Per Replacement
Example: 50 replacements at $4,000 each equals $200,000 annually.
Annual Attrition Rate = Departures / Average Headcount
State whether voluntary and involuntary departures are included. When comparing outsourcing, consider whether the provider absorbs some recruiting exposure while still evaluating provider attrition.
INTERACTIVE PLANNING MODEL
Run your scenario
Change the assumptions to see the result. Decimal rates use 0.80 for 80%.
PLANNING OUTPUT
$8,200.00Replacement cost per agent- Annual attrition cost
- $147,600.00
- Annual attrition rate
- 30%
Use this result as a planning estimate and validate the inputs before making a decision.