Workforce, Labor Standards & Skills Planning worked example

Turnover Cost at 50% avoidable share of separations: a worked example

This worked example runs the turnover cost numbers for a tougher week than the baseline: 50% avoidable share of separations instead of the typical 70%. Quantifies the cost of employee turnover from separation volume, replacement cost, and the avoidable share.

The inputs for this scenario

  • Separations in the period: 22 departures (held at the documented default)
  • Fully loaded replacement cost per departure: 6,800 $/departure (held at the documented default)
  • Avoidable (regrettable) share of separations: 50 % (the input this scenario stresses; the baseline uses 70)
  • Severance and admin flat cost: 3,000 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Turnover cost = separations x replacement cost x avoidable share + severance and admin.
  • Total turnover cost works out to 77,800 $ at these inputs, and this is the headline figure for the scenario.
  • Turnover cost per unit works out to 3,536 $ / piece at these inputs.
  • Variable turnover cost works out to 74,800 $ at these inputs.
  • Fixed turnover cost adder works out to 3,000 $ at these inputs.

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 27.78% below the baseline at 77,800 $.
  • Use it when scoping a retention initiative, justifying pay or scheduling changes, or reporting the financial impact of churn on a specific line, shift, or job family. A result at this level usually justifies acting on the stressed input before touching anything else, because every other figure in the table is downstream of it.

Results at a glance

  • Total turnover cost: 77,800 $ (headline result)
  • Turnover cost per unit: 3,536 $ / piece
  • Variable turnover cost: 74,800 $
  • Fixed turnover cost adder: 3,000 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Turnover Cost calculator, set avoidable share of separations to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.