This employee turnover cost calculator helps Australian businesses calculate the financial impact of losing and replacing an employee, including recruitment, training, and productivity losses.
Enter the departing employee’s annual salary in AUD (e.g., 100,000), recruitment costs, training time, and other expenses.
Get a detailed breakdown to inform retention strategies and budgeting.
Estimate the cost of replacing an employee in Australia.
Weeks for new employee to reach full productivity.
Percentage of normal output during training (e.g., 50% = half productive).
Enter $0 if no exit or severance costs apply.
This is an estimate; actual costs vary by role and industry. Visit Fair Work for employment guidelines.
Purpose:
Designed for Australian small and medium enterprises (SMEs), startups, and HR teams, this tool quantifies the hidden costs of employee turnover. Input figures in Australian dollars (AUD), adjust variables, and receive instant results. Ideal for budgeting, retention planning, or evaluating HR outsourcing with Scale Suite.
Tips for Ongoing Use:
Bookmark this page (Ctrl+D or Cmd+D) for quick access during HR reviews or hiring cycles. Regular use helps SMEs understand turnover’s financial impact and prioritise retention to save costs.
Understanding Turnover Cost Basics:
Employee turnover can cost SMEs 1.5–2x an employee’s annual salary due to recruitment, onboarding, and lost productivity. In Australia, these costs strain budgets, making proactive retention critical for financial health. For a more detailed breakdown on hidden costs, see our article here which explains some additional turnover costs, and for an idea on some estimated turnover rates, check this article on employee churn out.
Key Components:
1. Departing Employee’s Salary: Used to estimate productivity losses during training of the replacement.
2. Recruitment Costs: Expenses for job ads, agency fees (e.g., 15–25% of salary), or interviews - customise to your process.
3. Training Time: Number of weeks for a new employee to reach full productivity (e.g., 4 weeks). Costs reflect reduced output during training, assuming the new hire is less productive (e.g., 50% productive).
4. Training Productivity Loss: Percentage of normal productivity during training (e.g., 50% means the new hire produces half the output of a fully trained employee).
5. Exit, Admin & Severance Costs: Optional field for costs like exit interviews, administrative tasks (e.g., payroll adjustments), or severance pay (if applicable, per Fair Work Act for redundancies). Enter $0 if not relevant.
6. Additional Costs: Other expenses like temp staff or legal fees - tailor to your situation.
Benefits for SMEs:
This estimator improves budgeting accuracy, highlights the value of retention (e.g., reducing $47 billion in annual Australian turnover costs), and supports Fair Work Act compliance. See how Scale Suite’s HR services can lower turnover through better engagement and performance management.
Fair Work Adherence:
This calculator uses industry-standard estimates (as of August 2025). For official employment guidelines, visit the Fair Work Ombudsman or contact Scale Suite for tailored HR solutions. We also have other resources available here.
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