Workforce, Labor Standards & Skills Planning worked example

Turnover Cost at 81% avoidable share of separations: a worked example

What does the result look like when avoidable share of separations reaches 81%? The full calculation is worked below with real intermediate numbers. A workforce planner uses it to size the financial case for retention spending against ongoing attrition.

The inputs for this scenario

  • Separations in the period: 22 departures (unchanged)
  • Fully loaded replacement cost per departure: 6,800 $/departure (unchanged)
  • Avoidable (regrettable) share of separations: 81 % (raised for this scenario; the documented default is 70)
  • Severance and admin flat cost: 3,000 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Turnover cost = separations x replacement cost x avoidable share + severance and admin) to the inputs above produces each figure below.
  • At this operating point the engine returns 124,176 $ for total turnover cost, the number this scenario is built around.
  • At this operating point the engine returns 5,644 $ / piece for turnover cost per unit.
  • At this operating point the engine returns 121,176 $ for variable turnover cost.
  • At this operating point the engine returns 3,000 $ for fixed turnover cost adder.

How this compares with the baseline

  • Against the tool's baseline example, where avoidable share of separations sits at 70% and the headline result is 107,720 $, this scenario comes in 15.28% above the baseline at 124,176 $.
  • A figure at this level is achievable when avoidable share of separations is genuinely sustained, not just peaked for a shift. Replacement cost per departure is an estimate; if you understate ramp-up time and lost first-pass yield from green operators, the real cost runs well above the figure shown.

Results at a glance

  • Total turnover cost: 124,176 $ (headline result)
  • Turnover cost per unit: 5,644 $ / piece
  • Variable turnover cost: 121,176 $
  • Fixed turnover cost adder: 3,000 $

Run it with your numbers

  • Every input above is editable in the live Turnover Cost calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.