Retention Econmoics

The True Cost of Employee Turnover: A Financial Analysis Framework

Special Reports - January 2025

A comprehensive guide that goes beyond the standard "1.5-2x salary" rule of thumb to provide finance managers and HR leaders with a rigorous methodology for calculating actual turnover costs. Include:

• Direct costs breakdown (recruiting, onboarding, training) with industry benchmarks

• Indirect costs analysis (productivity loss, knowledge transfer, team morale impact)

• Role-specific cost multipliers (individual contributor vs. manager vs. executive)

• Departmental variability in accounting, finance, HR, operations, supply chain, marketing, and sales

• ROI calculations for retention initiatives

• Case studies showing how companies misallocate retention budgets by underestimating true costs

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