Calculating Your Cost of Turnover
If you feel overweight, you know how awful it can be to step on the scale after avoiding it for so long. You might be lucky and be in better shape than you think. Like losing weight, it can be painful to take that first step. But once you do, you will feel empowered knowing that you are one step closer to getting your organization back into shape.

Calculating your cost of turnover is simpler than you think. Begin by looking at everyone who has left your organization this year. If you want to capture a full year's worth of information, consider capturing the data for those who left the company the previous year as well. The business costs and impact of employee turnover can be grouped into four major categories: 1) costs due to a person leaving; 2) hiring costs; 3) training costs; and 4) lost productivity costs.

Costs Due to a Person Leaving
Once an employee has announced their resignation, they have begun to transition out of the company. While working out their notice period, their full attention is no longer on your business. Others in the organization are picking up their slack, which prohibits them from giving full attention to their own jobs.

In addition, consider the following costs:

1. Employees who must fill in for the person who leaves before a replacement is found;
2. The addition of temporary help or the use of consultants to fill in while the position is being re-staffed;
3. The cost of a manager or other executive having an exit interview with the employee to determine what work remains, how to do the work, why he is leaving, etc.;
4. The cost of training the company has invested in this departing employee; the cost of lost knowledge, skills and contacts of the departing employee;
5. Cost of lost customers the departing employee is taking with him (or that leave because service is negatively impacted) and;
6. The increased cost of unemployment insurance.
   

Hiring Costs
You might be lucky and find a candidate on a free website, but most likely you will need to post and advertise elsewhere.