Bridging the Generation Gap: How to Get Radio Babies, Boomers, Gen Xers and Gen Yers to Work Together and Achieve More

Feature Contents

1. Dear Workforce: Indirect Cost of Turnover?
How to quantify line items such as interview costs, lost client relationship costs, customer service costs and training costs.

2. Recalibrating Turnover-Cost Calculators
Turnover can produce substantial savings in employee benefit programs.

3. The Cost of Turnover
A worksheet for use in calculating what turnover costs. It includes direct costs, such as the cost of background checks, as well as indirect costs, such as lost productivity.

Bridging the Generation Gap: How to Get Radio Babies, Boomers, Gen Xers and Gen Yers to Work Together and Achieve More

Worksheet: calculating turnover costs
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Worksheet: Calculating Turnover Costs

Turnover Ratio: The number of employees who left, divided by the average number employed per year.
Separation Costs
Interviewer’s time (hours spent x hourly rate*)	$
Terminated employee’s time (while on payroll: hours spent x hourly rate)	$
HR administrative functions (terminated paperwork: hours spent x hourly rate)	$
Separation pay	$
Total separation costs	$
*Include benefits in the hourly rate.	$

Replacement Costs
Advertising	$
Internal communications (development time x hourly rate)	$
Interview time (hours spent x hourly rate for interviewer)	$
Administrative functions (typing, copying: hours spent x hourly rate)	$
Applicant testing (such as validated aptitude tests)	$
Applicant travel expenses	$
Applicant relocation expenses	$
Total replacement costs	$

Training Cost
Employee workbooks (printing + time for development x hourly rate)	$
Orientation(s) (new employee time + staff time x hourly rates)	$
On-the-job training (employees’ time x hourly rates)	$
Total training costs	$

Separation + Replacement + Training =	$
Per Employee Cost
(total costs ÷ number left in the company) =	$
Source: Bridging the Generation Gap, by Linda Gravett and Robin Throckmorton (The Career Press, 2007)

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