Free HR calculator
Retention Savings Calculator
Keeping people is cheaper than replacing them. This shows what lowering your turnover is worth. How many departures you would avoid at a target rate, what each one costs to replace, and the annual savings. It turns a retention goal into a dollar figure you can put behind the investment.
Before you start
What you will need. Employees, Average salary, Current turnover, Target turnover
Your turnover
Replacement cost
Annual retention savings
The math
The method
How retention savings work
Every person who leaves and has to be replaced carries a cost. Recruiting, onboarding, and the weeks or months before the next hire is fully up to speed. Lower your turnover rate and you avoid some of those replacements, and the money you would have spent becomes savings. This tool compares your current turnover to a target, counts the departures you would avoid, and multiplies by what each one costs.
How this is calculated
What a replacement costs
Research from SHRM and Gallup puts the cost of replacing an employee at 50% to 200% of their annual salary, depending on the role. Frontline positions sit near 40%, professional and technical roles around 80% to 100%, and managers or leaders as high as 200%. The figure covers the visible costs of hiring. It also covers the harder-to-see losses in productivity and knowledge while the seat is empty and the new person ramps.
What counts as good turnover
It varies widely by industry and role. Compare your rate against a published benchmark for your industry, such as the BLS JOLTS survey's separations rates, updated monthly. Compare it against your own trailing years too, rather than a single rule of thumb. Some turnover is healthy and unavoidable. The useful target is not zero, but a rate that keeps your teams stable without overspending to hold people who would move on anyway.
Turning the goal into a number
Retention work competes for budget like anything else, so it helps to size the prize. If cutting turnover by a few points saves six figures a year, the arithmetic changes. A manager-training program or a pay adjustment starts to look like an investment rather than a cost. Because the saving repeats every year the lower rate holds, even a modest improvement compounds. Treat the result as the upper bound and weigh it against what the improvement will take.
Carry this into the decision
Cost your turnover in full
The in-depth Turnover Cost Excel breaks the replacement cost into its parts, prices the time of everyone involved, and gives you a board-ready figure to set retention spending against.
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Put your own numbers in and read the result on screen.
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Put your own numbers in and read the result on screen.
Put your own numbers in and read the result on screen.
Put your own numbers in and read the result on screen.
Put your own numbers in and read the result on screen.
This tool estimates from the figures you enter. It is general information rather than legal, tax, or accounting advice, so check the result against your own records before you rely on it.