Figure based on the national average salary of $40,000 and assumes 40% overheads.
Figure based on the national average salary of $40,000 and assumes 240 annual working days.
Figure based on the assumption that the cost of recruiting, training and covering someone leaving is approximately equivalent to 40% of their annual salary – here taken to be $40,000.
Developed by our friends at NEF Consulting
- $40,000 – The national Average Wage for 2010 in the US was $41,673.83. $40,000 is rounded to the nearest $10,000
- 240 – Average number of working days in a year minus 20 days holiday (including public holidays)
- 40% – The assumed cost of staff turnover as a % of annual salary. This is based on data estimating that the average cost to an employer of a job change is 40% of average gross pay (the lower end of the range based on international evidence).
- 16% – Assumed rate of staff turnover. This is based on survey data indicating that the average annual rate of staff turnover in employing organisations in the UK is 16%
- 1% – Assumed productivity gain
- 1 – Assumed each employee has one less day off work due to sickness in a year
- 10% – Assumed reduction in the annual turnover of staff
- $10.00 – Cost of DH survey per employee