Employee Attrition Cost Calculator

Total replacement cost = Separation cost (exit formalities, notice period) + Recruitment cost (₹10,000–50,000 per hire) + Onboarding cost + Training cost (trainer time + materials) + Productivity loss (new employee at 50–70% productivity for 3–6 months). Total: 50–200% of annual salary depending on role seniority and technical complexity.

Attrition benchmarks: IT/ITES 15–25% (high but accepted), Manufacturing 10–15%, Healthcare 12–20%, Retail 30–50% (very high). Above 25% annually significantly impacts knowledge retention, service quality, and team morale. Below 10% may indicate lack of career mobility — both extremes require management attention.

High-impact retention: competitive compensation (top 25% of market), clear career progression path, skill development investment (₹10,000–30,000 per employee per year), flexible work arrangements (where possible), manager quality (people leave managers not companies), and recognition programs. Conduct stay interviews — ask what would make people stay before they decide to leave.

If attrition cost is ₹2 lakhs per person and you prevent 5 departures through ₹3 lakh retention investment (training, salary increase, engagement programs), net saving = ₹10 lakhs - ₹3 lakhs = ₹7 lakhs. ROI = 233%. Retention investment almost always outperforms spending the same amount on recruitment.

Track top reasons for leaving (collect at every exit): compensation, career growth, manager relationship, work-life balance, job mismatch, and competitive offer. Look for patterns — if manager relationship appears in 30%+ of exits, that is a management problem, not a market problem. Track by department and manager, not just company-wide.