Estimate the financial and staffing effect of improving first-year retention among new hires. Compare the current retention rate with a target, then translate the additional retained employees into avoided replacement cost and retained productivity value.
Use the main result as a scenario estimate and read the supporting metrics to understand what drives it. Compare current and target cases with consistent definitions.
This is a planning estimate. Do not add avoided cost and productivity value unless those inputs represent non-overlapping benefits.
For 100 hires, improving retention from 72% to 82% retains 10 additional hires. At $12,000 per replacement, the estimated avoided cost is $120,000.
Use figures from the same reporting period and apply one consistent definition to every input. The help text beside each field describes the expected unit.
Zero is accepted where it represents a valid count, cost, or rate. Inputs used as divisors must be greater than zero so the result remains defined.
Not necessarily. The calculator is a planning model based on the values you enter. Confirm accounting treatment with your finance team before using it in reported statements.
Calculate the current case, record the result, then change one assumption at a time. This makes it easier to see which input drives the difference.
Applicant tracking systems may use different cohort dates, stage definitions, exclusions, or rounding. Align those definitions before comparing results.
| Model element | How it is used |
|---|---|
| Annual new hires | New hires in one year. Unit: hires. |
| Current 12-month retention | Share still employed after 12 months. Unit: %. |
| Target 12-month retention | Planned retention rate. Unit: %. |
| Replacement cost per departure | Recruiting and replacement expense. Unit: USD. |
| Annual productivity value per retained hire | User-defined value, not salary. Unit: USD. |