Center for Workforce Solutions: Turnover Cost Calculator

Workforce | December 20, 2019 | by Susan Hildebrandt

Do you know how much staff turnover is costing your community? If not, you should. Keep in mind that the rule of thumb for the cost of replacing any employee is 25% of the salary amount.

Do you know how much staff turnover is costing your community? If not, you should. Keep in mind that the rule of thumb for the cost of replacing any employee is 25% of the salary amount.

  • The average turnover for home care agency staff is between 40-60%.
  • The average turnover in nursing homes for certified nursing assistants is between 40-70%.
  • The minimum direct cost of replacing a direct care worker is individual to each organization, but includes exit interviews, the use of temporary staff, training, etc., and, at a minimum, is about $2,500.
  • Indirect costs are individual to each organization but include loss of productivity, lost clients, etc. The minimum amount is $2,000.
  • Thus, minimum total direct and indirect costs equal $4,500 per direct care worker.

Do the math: An organization that averages 40 terminations per year is spending at least $180,000 (40 x $4,500= $180,000)

What’s your turnover cost? Use the LeadingAge online turnover cost calculator that you can download and do in excel.