2,080 annual hours
A full-time equivalent assumption used to convert hourly wage into annual wages. Part-time-heavy workforces should adjust this internally.
Calculator methodology
Employee turnover cost calculator methodology
The HeyPulse calculator is a planning model for hourly and frontline teams. It estimates wage-based replacement cost and modeled savings from reducing preventable turnover. It is not financial, legal, or accounting advice.
Formula
| Annual workers replaced | Active frontline staff x annual turnover rate |
|---|---|
| Replacement cost per worker | Average hourly wage x 2,080 annual hours x replacement-cost multiplier |
| Estimated annual turnover cost | Annual workers replaced x replacement cost per worker |
| Modeled savings | Estimated annual turnover cost x modeled turnover reduction |
16% replacement-cost multiplier
A conservative default for hiring, onboarding, training lag, overtime, and productivity drag. Employers with higher recruiting or training costs should use a higher internal multiplier.
32% modeled turnover reduction
A planning assumption for estimating possible savings from earlier issue detection. It is not a guarantee and should be replaced with customer-specific results when available.
Why the model is intentionally conservative
Many organizations include recruiting, training, lost productivity, overtime, manager time, service disruption, and quality errors in turnover cost. HeyPulse uses a simple wage-based estimate so operators can understand the mechanics and adjust assumptions to their own finance model.