Replacement Cost Replacement cost p

Replacement Cost Replacement cost per employee can be an eye-opener for managers and executives. In addition to the costs calculated for the cost-per-hire metric, this measurement also includes costs for training, lost productivity, temporary replacements, overtime for employees who fill in while the position is vacant, and others. These costs can easily reach 300 percent of annual salary for the position.Turnover Analysis One of the most commonly used metrics, turnover analysis, is calculated by dividing the average number of total employees for the measurement period by the number of employees who exited the organization. This measurement can be calculated in a variety of ways to meet specific organization needs. Some variations include calculating on a monthly or annual basis and calculating turnover for voluntary separations only or for different business units in the organization.