Estimate how a remote-work policy may change annual employee departures and replacement costs. Compare a baseline turnover rate with an observed or expected remote-work turnover rate, then translate the difference into retained employees and avoided replacement expense.
A positive result represents estimated additional employees retained; a negative result represents additional expected departures. Decimal employees are expected values, not literal partial people.
This is a scenario estimate, not proof that the work policy caused the turnover difference. Use comparable periods and populations.
For 400 employees, reducing turnover from 18% to 13% means 20 fewer departures per year. At $18,000 per replacement, the estimated annual cost avoided is $360,000.
No. It quantifies a rate difference but does not isolate the policy from pay, management, labor-market, or workforce-mix effects.
Turnover rates produce an expected annual value. Use the decimal for budgeting and interpret actual departures as whole people.
Include the costs relevant to your decision, such as recruiting, onboarding, temporary coverage, and lost productivity, without double counting.
Yes. If policy turnover exceeds baseline turnover, the result is presented as added replacement cost.
Yes. Both turnover rates should cover comparable roles, time periods, and eligibility groups for a useful comparison.
| Output sign | Interpretation |
|---|---|
| Positive employees | Fewer expected departures |
| Zero | No modeled turnover change |
| Negative employees | More expected departures |