The chart below can be used to show the “green money” or actual costs of turnover, and the “blue money” or softer costs of turnover.
| Blue Money and Green Money Turnover Cost Calculations | |
| NOTICE PERIOD Green Money (actual) Costs: | |
| 1. Last paycheck, accrued vacation, separation pay | $_______________ |
| 2. Increased unemployment tax | $_______________ |
| 3. Continued benefits | $_______________ |
| Blue Money Costs (appropriate salary/hour x time spent on each activity): | |
| 1. Administrative costs for processing the separation: process benefits; contact unemployment office, Payroll, IS departments; schedule exit interview; etc. | $_______________ |
| 2. Lower productivity: employee, peers, supervisor, subordinates | $_______________ |
| 3. Exit interview, transition meetings | $_______________ |
| VACANCY PERIOD Green Money (actual) Costs: | |
| 1. Advertising and recruiter fees | $_______________ |
| 2. Interview expenses (meals, mileage, or other) | $_______________ |
| 3. Printing costs for company marketing materials | $_______________ |
| 4. Assessments | $_______________ |
| 5. Criminal checks, reference checks, credit checks, etc. | $_______________ |
| 6. Medical exams and drug tests | $_______________ |
| 7. Temporary/contract employee costs | $_______________ |
| 8. Overtime costs | $_______________ |
| 9. Relocation expenses and salary | $_______________ |
| Blue Money Costs (appropriate salary/hour x time spent on each activity): | |
| 1. Lost productivity: peers, supervisor, subordinates | $_______________ |
| 2. Advertising creation and placement | $_______________ |
| 3. Recruiter selection | $_______________ |
| 4. Administrative costs: ordering forms and copies of annual reports, scheduling and scoring assessments, coordinating with hiring manager and others, etc. | $_______________ |
| 5. Resume screening | $_______________ |
| 6. Interviews: first, second, third | $_______________ |
| HIRING/ORIENTATION PERIOD Green Money (actual) Costs: | |
| 1. Orientation materials (handbook, video, handouts, etc.) | $_______________ |
| 2. Formal training programs (materials, course fees) | $_______________ |
| 3. Informal one-on-one training (materials, if any) | $_______________ |
| Blue Money Costs (appropriate salary/hour x time spent on each activity): | |
| 1. Orientation participants’ salaries | $_______________ |
| 2. Lost productivity: peers, supervisor, subordinates | $_______________ |
| 3. Administrative costs: orientation setup, ordering materials, etc. | $_______________ |
| 4. Informal training and one-on-ones | $_______________ |
| HIDDEN COSTS | |
| 1. Missed deadlines and shipments | $_______________ |
| 2. Loss of organization knowledge | $_______________ |
| 3. Lower morale due to overwork | $_______________ |
| 4. Learning curve | $_______________ |
| 5. Client issues due to turnover | $_______________ |
| 6. Loss of client relationships | $_______________ |
| 7. Disrupted department operations | $_______________ |
| 8. Chain reaction turnover | $_______________ |
| Total Replacement Cost | $_______________ |
From, Manager of Choice reprinted with permission of Davies-Black Publishing, a division of CPP, Inc., 3803 East Bayshore Road, Palo Alto, CA 94303 Copyright 2003 by Nancy S. Ahlrichs. All rights reserved.