NOTICE PERIOD
Direct (Actual) Costs
|
|
1. Last paycheck, accrued vacation, separation pay |
$
|
| |
|
2. Increased unemployment tax |
$
|
| |
|
3. Continued benefits |
$
|
| |
Indirect Costs
(appropriate salary/hour x time spent on each activity):
|
|
1. Administrative costs for processing the separation: process benefits; contact unemployment office, Payroll, IS departments; schedule exit interview; etc. |
$
|
| |
|
2. Lower productivity: employee, peers, supervisor, subordinates |
$
|
| |
|
3. Exit interview, transition meetings |
$
|
| |
VACANCY PERIOD
Direct (Actual) Costs
|
|
1. Advertising and recruiter fees |
$
|
| |
|
2. Interview expenses (meals, mileage, or other) |
$
|
| |
|
3. Printing costs for company marketing materials |
$
|
| |
|
4. Assessments |
$
|
| |
|
5. Criminal checks, reference checks, credit checks, etc. |
$
|
| |
|
6. Medical exams and drug tests |
$
|
| |
|
7. Temporary/contract employee costs |
$
|
| |
|
8. Overtime costs |
$
|
| |
|
9. Relocation expenses and salary |
$
|
| |
Indirect Costs
(appropriate salary/hour x time spent on each activity):
|
|
1. Lost productivity: peers, supervisor, subordinates |
$
|
| |
|
2. Advertising creation and placement |
$
|
| |
|
3. Recruiter selection |
$
|
| |
|
4. Administrative costs: ordering forms and copies of annual reports, scheduling and scoring assessments, coordinating with hiring manager and others, etc. |
$
|
| |
|
5. Resume screening |
$
|
| |
|
6. Interviews: first, second, third |
$
|
| |
HIRING/ORIENTATION PERIOD
Direct (Actual) Costs
|
| |
|
1. Orientation materials (handbook, video, handouts, etc.) |
$
|
| |
|
2. Formal training programs (materials, course fees) |
$
|
| |
|
3. Informal one-on-one training (materials, if any) |
$
|
| |
Indirect Costs
(appropriate salary/hour x time spent on each activity):
|
|
1. Orientation participants’ salaries |
$
|
| |
|
2. Lost productivity: peers, supervisor, subordinates |
$
|
| |
|
3. Administrative costs: orientation setup, ordering materials, etc. |
$
|
| |
|
4. Informal training and one-on-ones |
$
|
| |
HIDDEN COSTS:
|
|
1. Missed deadlines and shipments |
$
|
| |
|
2. Loss of organization knowledge |
$
|
| |
|
3. Lower morale due to overwork |
$
|
| |
|
4. Learning curve |
$
|
| |
|
5. Client issues due to turnover |
$
|
| |
|
6. Loss of client relationships |
$
|
| |
|
7. Disrupted department operations |
$
|
| |
|
8. Chain reaction turnover |
$
|
| |
|
Total Replacement Cost
|
|
| |
