The Calculation Methodology
Most companies track turnover rate. Few calculate turnover cost. A 15% turnover rate sounds manageable. $2.4 million in annual replacement costs sounds like a problem worth solving.
This calculator uses industry-standard methodology from SHRM research to estimate your true turnover cost.
What We Include
Direct Replacement Costs:
- Recruiting (job postings, recruiter fees, interview time)
- Onboarding (training, equipment, administrative setup)
- Ramp time (3-6 months to full productivity for most roles)
Hidden Costs:
- Knowledge loss (institutional expertise that walks out the door)
- Team disruption (remaining employees covering gaps)
- Manager time (interviewing, training, managing transitions)
- Quality dips (errors during learning curve)
The Multiplier
SHRM research suggests replacement costs range from 50% to 200% of annual salary, depending on role complexity:
| Role Type | Replacement Cost |
|---|---|
| Entry-level | 50% of salary |
| Mid-level | 100-150% of salary |
| Senior/Specialized | 150-200% of salary |
This calculator uses 150% of average salary as a blended estimate. Adjust your interpretation based on your workforce composition.
What This Means
These numbers represent what you're spending regardless of whether you do anything about turnover. The question isn't whether turnover has a cost. It does. The question is whether that cost is addressable.
Research suggests most turnover is preventable. Employees leave for reasons their managers could have addressed: career development stalls, manager behavior issues, lack of communication, feeling unheard.
If even 20-30% of your turnover is preventable, the savings dwarf any intervention investment.
Now that you know what turnover is costing you, learn how to reduce employee turnover and keep more of that money.
What Prevention Looks Like
Preventing turnover isn't about perks or programs. It's about:
- Managers who notice warning signs before resignation
- Career conversations that happen proactively, not reactively
- Communication that reduces uncertainty
- Problems surfaced early enough to address
This is what the CLOVER Framework operationalizes through daily manager behaviors.
Clover ERA Pricing Context
| Option | Investment | Scope |
|---|---|---|
| 90-Day Pilot | $24,000 | Up to 150 employees |
| Department | $48,000/year | Up to 200 employees |
| Enterprise | $96,000 - $180,000/year | 200 - 1,000 employees |
The math: If a pilot prevents 2 departures where replacement costs $75K+ each, the $24K investment returns $150K+ in savings. At the department level ($48K/year for up to 200 employees), preventing just 3-4 departures covers the full annual cost. At enterprise scale, preventing 6-12 departures typically covers the investment.
If you continue after the pilot, the $24,000 applies toward your first annual contract. See full pricing details.
What We Can't Calculate
This calculator estimates replacement costs. It doesn't capture:
Cascade effects: When one departure triggers others. A key person leaving often takes 2-3 others within 6 months.
Opportunity costs: Projects delayed, clients underserved, innovation not pursued because you're backfilling instead of building.
Cultural damage: What happens to remaining employees when they watch good people leave repeatedly.
Restructure contagion: The 15-25% voluntary turnover spike that often follows layoffs.
The true cost of turnover is almost certainly higher than what this calculator shows. We've chosen conservative assumptions because honest numbers build trust.
Frequently Asked Questions
Where does the 150% replacement cost come from?
SHRM (Society for Human Resource Management) research on the costs of employee turnover. The actual range is 50-200% depending on role complexity. We use 150% as a reasonable blended estimate. Senior and specialized roles typically cost more to replace; entry-level roles cost less.
My industry has unusually high turnover. Is this still accurate?
The per-departure cost calculation remains valid. High-turnover industries (hospitality, retail) often have lower per-departure costs due to faster hiring cycles and less specialized roles. Adjust expectations accordingly, or use a lower replacement cost multiplier in your own analysis.
What turnover rate should I use if I don't know mine?
Industry averages range from 10-25% depending on sector. Technology runs 13-15%. Healthcare runs 15-20%. Hospitality and retail run 60%+. When in doubt, use 15% as a starting point, then verify with your HR data.
Does this include involuntary turnover?
This calculator focuses on voluntary turnover (employees who choose to leave). Involuntary turnover (terminations, layoffs) has different cost structures and different prevention strategies.
How do I know if my turnover is preventable?
Exit interview research suggests 75% of voluntary turnover is preventable. The main drivers are career development, manager relationship, and work environment. All are addressable with the right approach.