Turnover Costs Summary

I am currently reading Patricia & Jack Philips book 'ROI in Action Casebook'. It’s a very interesting and useful tome because the consistent challenge people face when undertaking ROI of training is identifying suitable metrics against which a £ can be aligned. One area is labour turnover. In the Philips’ book they quote some very interesting meta data they pulled together of turn over costs per individual against job type or category. Let me quote the table:

Type/Category Turnover cost ranges as a Percentage of Annual Wage/Salary

Entry LevelHourly None Skilled (e.g. Fast food Workers) 30-50%

Service/Production Workers – Hourly (e.g. Courier) 40-70%

Skilled Hourly (e.g. Machinists) 75-100%

Clerical/Administrative (e.g. Scheduler) 50-80%

Professional (e.g. Representative, Nurse, Accountant) 75-125%

Technical (e.g. Computer Technician) 100-150%

Engineers (e.g. Chemical Engineer) 200-300%

Specialist (e.g. Computer Software Designer) 200-400%

Supervisor/Team Leaders (e.g. Section Supervisor) 100-150%

Middle Managers (e.g. Department Managers) 125-200%

This is incredibly valuable data as one recurring metric which Training and Development can be seen to consistently impact on is labour turnover.