Calculating Turnover Costs: How Do You Use Excel for Accurate Results?

Subject: Excel Workbook for Calculating Turnover Cost

Please use the attached Excel workbook to calculate the cost of turnover.

Bob Gately
Email: gately@csi.com

Dear Bob,

Is the multiplier value of 0.25 based on research findings or calculated using certain figures? If it is the latter, how is the value obtained? Also, in line 7, how can that be interpreted in terms of calculations?

Expecting an enlightening reply.

Thanks,
Ann

Hello Ann:

How is the multiplier derived in line 4 - is it a random number, or is there a formula to arrive at the multiplier figure of 1.25?

The multiplier is 1.25 for employees who have annual pay rates between US$20,000 and US$40,000.

Is the multiplier value of 0.25 based on research findings or calculated using certain figures? If the latter, then how is the value obtained?

The value is derived from users of the Bliss-Gately Tool Excel workbook, which allows users to calculate the cost of replacing an employee. The Bliss-Gately Tool is not a free workbook, however.

Also, line 7 - how can that be interpreted in terms of calculations?

It is a rough estimate of the cost for a US employer to use our method of hiring for talent.

Bob Gately
gately@csi.com

Hi Bob,

The calculator is a very promising tool. The only thing that's got me is, what does W2 in line 9 stand for? I'm based in India, and I'm sure we have a similar factor but just not called W2. Also, will the tracker work just the same if I were to convert the values into rupees, or do I have to make a few changes to the formulae as well?

Regards,
Akil

Hello Akil:

The calculator is a very promising tool.

Thanks, it is based on the Bliss-Gately Tool, which is an Excel workbook I developed from the article by Bill Bliss, my co-author, entitled "The Cost of Turnover." We were going to give the workbook away, but it took so much of my time that I decided to sell it instead. We have been told it is the best method to use to calculate the cost of replacing employees by name.

The only thing that's got me is what does W2 in line 9 stand for? I'm based in India, and I'm sure we have a similar factor but just not called W2.

I apologize for taking so long to answer your question, but I thought I had. Perhaps I did in another thread.

W2s are the forms employers in the US mail to their current and former employees that state their income and taxes paid in the preceding tax year so that the recipients can complete their tax forms. Managers are often surprised to learn how many people were on the payroll during the previous tax year. It can be an eye-opener.

Also, will the tracker work just the same if I were to convert the values into rupees, or do I have to make a few changes to the formulae as well?

That is an excellent question. Please send me an email next week to give me some time to think about it.

Bob Gately

gately@csi.com

Hi Bob,

Thank you for your response. I tried inputting values in rupees into the calculator. I obtained numbers and values that appear quite realistic. All I need to do now is compare last year's cost of turnover as calculated by the company using their methods and then compare the results to the results I've reached.

The calculator is an amazing tool in several ways. It not only simplifies the whole calculation process but is also faster than the traditional methods used. I just need to determine how accurate it proves to be when the values are in rupees.

I will send you an email next week nonetheless.

Regards,
Akil