Every Departure
Has a Price Tag. You Just
Haven't Calculated It.
The Turnover Economics Intelligence™ Engine converts employee turnover into measurable business impact — quantifying recruiting costs, lost productivity, revenue leakage, and enterprise value erosion from every departure.
Annual Turnover Cost
$4.80M
12.6% of revenue$24K per employee · 46 annual departures · $104K per departure
Executive Summary
Total Annual Turnover Cost: $4.80M (12.6% of revenue)
Cost Per Departure: $104K
Retention Score: 84/100 (Strong)
Largest Cost Driver: Lost Revenue (54% of total)
Most Expensive Segment: Voluntary Turnover (42% of cost)
15% turnover reduction would save $720K/year with projected 6x 3-year ROI
$4.80M
12.6%
$104K
46
Top Cost Drivers
1. Lost Revenue: $2.61M (54%)
2. Lost Productivity: $443K (9%)
3. Recruiting Cost: $391K (8%)
Recommended Actions
1. Launch high-performer retention program with compensation review and accelerated promotion track
2. Deploy pulse survey and address top 3 engagement drivers within 60 days
3. Launch knowledge management initiative — capture critical institutional knowledge before it walks out
4. Benchmark total compensation against market for roles with above-average turnover
9 Cost Components
Every departure triggers a cascade of direct, indirect, and opportunity costs
$4.80M
$104K per departure average
Revenue forgone during vacancy and ramp-up periods
Ramp period gap between hire and full productivity
Job postings, agency fees, sourcing, screening
Alternative investment return forgone (8% cost of capital)
Formal training programs, manager coaching, shadowing
Revenue at risk from disrupted customer relationships
Equipment, systems setup, first-week administration
Interview time, assessments, background checks, travel
Manager hours spent interviewing, covering gaps, training
$2.61M
Revenue forgone during vacancy and ramp-up periods
$443K
Ramp period gap between hire and full productivity
$391K
Job postings, agency fees, sourcing, screening
$356K
Alternative investment return forgone (8% cost of capital)
$313K
Formal training programs, manager coaching, shadowing
$300K
Revenue at risk from disrupted customer relationships
$193K
Equipment, systems setup, first-week administration
$129K
Interview time, assessments, background checks, travel
$72K
Manager hours spent interviewing, covering gaps, training
4 Turnover Segments
Not all departures cost the same — segmentation reveals where the real money is
Voluntary Turnover
28 departures/year
High Performer Turnover
8 departures/year
Leadership Turnover
2 departures/year
Involuntary Turnover
8 departures/year
5-Dimension Business Impact
Turnover erodes value across every dimension of the business
Total Annual Cost
$4.80M
12.6% of Revenue
Revenue lost to unfilled roles, ramp-up gaps, and customer disruption
Direct margin erosion from replacement costs and productivity loss
Lost productive capacity during vacancy periods and training
Service degradation from relationship disruption and inexperienced replacements
Valuation impact from higher risk profile and lower operational predictability
$1.68M
Revenue lost to unfilled roles, ramp-up gaps, and customer disruption
$1.44M
Direct margin erosion from replacement costs and productivity loss
$720K
Lost productive capacity during vacancy periods and training
$576K
Service degradation from relationship disruption and inexperienced replacements
$384K
Valuation impact from higher risk profile and lower operational predictability
Prevention ROI Scenarios
What if you could reduce turnover? Every percentage point saved creates measurable ROI
5% Reduction
10% Reduction
15% Reduction
25% Reduction
Know What You're Losing.
Before You Lose It.
The Turnover Economics Intelligence™ Engine is available through the Business DNA™ Assessment. Complete your assessment to receive a personalized turnover cost analysis calibrated to your organization.
Generated by TELEGENT AI™
The Business Impact Platform™
Workforce Intelligence™ For Businesses That Want More Impact.
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All Rights Reserved.
Confidential and Proprietary. Prepared exclusively for the recipient organization. This report contains proprietary TELEGENT AI™ methodologies, scoring models, and business intelligence frameworks. No part of this document may be reproduced, distributed, or transmitted without the prior written permission of TELEGENT AI™.