Aspen Institute Publishes New "Cost of Turnover Tool" for Employers
From the Aspen Institute
How much does worker churn cost your business? A large and growing body of research shows that turnover is a significant expense to firms. But how do you calculate this cost, and what do you do with what you learn?
Putting a dollar figure on the annual financial impact of losing and rehiring workers at your company may help you make the case — and find the resources — for investing in strategies to improve retention. One important retention strategy, investing in the education, training and development of your workers, is also good for your bottom line. Companies that provide upskilling opportunities report reductions in their rate of turnover. Investing in upskilling could save your business money in the long term.
We've created a tool to walk you through the steps to calculate cost of turnover. There are two versions: a worksheet that allows you to collect the information you need, and a Microsoft Excel version that will do the math for you.
This tool is a collaboration between two initiatives at the Economic Opportunities Program -- UpSkill America and Reimagine Retail -- to help our business and workforce partners quantify the value of investing in their workers to improve retention. As you put it to use, we hope you'll reach out to tell us what you learn!