• AS is the average annual salary ($) • #E is the # of employees lost per year • #W is the average weeks to fill the position ## How to Calculate Turnover Cost? The following example problems outline how to calculate Turnover Cost. Example Problem #1 1. First, determine the average annual salary ($). The average annual salary ($) is given as 75,000 . 2. Next, determine the # of employees lost per year. The # of employees lost per year is calculated as 10 . 3. Next, determine the average weeks to fill the position. The average weeks to fill position is found to be 6. 4. Finally, calculate the Turnover Cost using the formula above: TOC = AS / 52 * #E * #W Inserting the values from above yields: TOC = 75,000 / 52 * 10 *6 = 86,538.46 ($)

Example Problem #2

The variables needed for this problem are provided below:

average annual salary ($) = 60,000 # of employees lost per year = 5 average weeks to fill position = 5 Entering these values and solving gives: TOC = 60000 / 52 * 5 * 5 = 28,846.15 ($)