What are staff labour turnover costs?
Staff turnover cost measures the total cost of turnover to your company on a per employee basis. Total costs would include more than simply the cost of an advert for a replacement. It would include other recruitment and selection costs, training costs, separation costs and loss of productivity. According to one US report, “a rule of thumb sometimes used is that it costs half a year’s salary to hire a replacement” (The Sainsbury Centre for Mental Health, 2007). If you feel you have more accurate information on staff labour turnover costs, you can use these in the tool.
