Estimations of total costs of employee turnover vary by model. Sorensen (1995) approximates that the total turnover costs related to her model are 50 percent of the leaver’s annual salary. Ettorre (1997) asserts that turnover costs can reach 100 percent of the leaver’s annual salary. The Saratoga Institute estimates that the total cost of employee turnover is 100 to 200 percent of the leaver’s pay and benefits ( Fitz-enz, 1997). In taking all turnover factors into account, William Bliss of Bliss and Associates (2000) suggests that the total cost of employee turnover is at least 150 percent of the leaver’s annual salary. The more the leaver is paid, the higher this percentage for total turnover costs.

This percentage varies based upon factors such as the industry, job function and geographic location. To accommodate these variances we have conservatively adjusted the turnover percentages used in the calculator for the salary bands below:

Salary Band
< $40,000
$40,000-65,000
$65,000 +
Turnover %
50%
100%
150%


Works Cited:
Bliss, W. (2000), “The Cost of Turnover May Be Greater Than You Think, Reports Bliss & Associates.” PR Newswire, February 15, 2000.
Ettorre, B. (1997). “Employee Retention: Keeping the Cream.” HR Focus, 74: 1-3.
Fitz-enz, J. (1997). “It’s costly to lose good employees.” Workforce, 75: 50-51.
Sorensen ,N.M. ( 1995). “Measuring HR for Success. " Training & Development, 49(9): 49.





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