Replacement Cost Replacement cost p

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