Employee Turnover Cost Calculator

Calculate the true cost of losing one employee in Estonia

Employee Information

Country

Position Level

Monthly Gross Salary (€)

The departing employee's monthly gross salary

Annual Salary: €36000.00

Termination Conditions

Termination Type

Type of termination affects severance pay requirements. Redundancy typically requires statutory severance in Baltic countries.

Years of Service

Length of employment affects severance calculations in redundancy situations

Garden Leave (months)

Garden leave is a period when an employee who is leaving remains on payroll but is not required to work or attend the office. Common for senior roles or those with access to sensitive information, it prevents the employee from joining competitors immediately while protecting company interests.

Recruitment Costs

External Recruiter Fee

External recruitment agency fee (flat fee or based on agreement)

Job Ad

Cost of posting job ads on job boards like CV.ee, CV-Online, LinkedIn, etc.

Job Ad Cost (€)

Total cost for job posting and advertising

Using Assessments & Tests

Cost of candidate testing, background checks, technical assessments, personality tests, etc.

Assessment Cost (€)

Background checks, technical tests, assessments

Total Recruitment Cost

• Job Ad: €300.00

• Assessments: €200.00

• HR Time: €300.00 (10h × €30/h)

• Manager Time: €401.79 (15h × €26.79/h)

Total: €1201.79

Timeline Settings

Default values are set based on Mid Level position. Adjust as needed for your specific scenario.

Recruitment Period (days)

Time from job posting to offer acceptance

Total Vacancy Days

Days the position remains unfilled (including notice period)

Training Period (days)

Days of formal training and onboarding

Productivity Ramp (days)

Days until new hire reaches full productivity

HR Hours per Hire

Total HR time spent on recruitment process

Manager Hours per Hire

Manager time for interviews and decision-making

Onboarding Costs

Configure the costs associated with onboarding a new employee. These values feed into the "3. Onboarding & Training" cost breakdown.

Compulsory Internal Training (hours)

Hours of mandatory internal training (compliance, systems, processes). Employee cost calculated based on their hourly rate. Internal Trainer cost calculated at €30/hour.

Employee cost: €143 (8h × €17.86/h)

Internal Trainer: €240 (8h × €30/h)

Compulsory External Training (€)

Direct cost of external training courses, certifications, or workshops required for the role.

Onboarding Process (days)

Days spent on shadowing, meet-and-greet, time with buddies, acquiring tools, familiarizing with internal processes, decision-making norms, etc. Cost = Employee days × daily salary + Manager involvement at 1.5× daily salary.

Cost: €1731 (employee + manager time)

Systems Update

Fixed cost for IT setup, equipment configuration, access provisioning, and system updates.

€500 (fixed cost)

IT setup, equipment, access provisioning

Total Onboarding Cost: €2613.63

• Internal Training (employee): €143

• Internal Trainer: €240

• External Training: €0

• Onboarding Process: €1731

• Systems Update: €500

Cost Breakdown

Pricing Notes: Exit Interview = 3 hours at €30/hour HR rate (€90). Knowledge Transfer = 5 days of handover work at 50% productivity.

Direct Costs

€4251.57

Measurable, out-of-pocket expenses that directly impact the budget

1. Separation Costs

Exit Interview: 3 hours of HR time at €30/hour = €90. Knowledge Transfer: 5 days of handover work at 50% productivity (departing employee works half capacity during handover).

€436.15

Notice Period Pay€0

Exit Interview€90

Knowledge Transfer€346

2. Recruitment Costs

€1201.79

Job Ad€300

HR Time€300

Manager Time€402

Assessments€200

3. Onboarding & Training

Internal Training: employee hours × hourly rate + trainer hours × €30/h. External Training: direct cost. Onboarding Process: days × (employee + manager at 1.5×) daily salary. Systems Update: €500 fixed.

€2613.63

Internal Training (employee)€143

Internal Trainer€240

External Training€0

Onboarding Process€1731

Systems Update€500

Indirect Costs - Estimated (€)

€9623.08

Hidden costs related to lost productivity and knowledge that are harder to measure but significantly impact business performance

4. Vacancy Costs

Calculated as: Vacancy Days × Daily Salary × 15% team productivity loss × 3 team members. Team size by level: Entry=2, Mid=3, Senior/Leadership=5.

€1869.23

Team Productivity Loss (3 members)€1869

5. Productivity Ramp-Up

Calculated as: Ramp Days × Daily Salary × Productivity Loss %. New hires start at reduced productivity (Entry: 80%, Mid: 50%, Senior: 30%, Leadership: 20%) and gradually reach full output.

€4153.85

Reduced Output€4154

6. Knowledge Loss

Calculated as: Annual Salary × 10% × Position Multiplier (Entry: 0.5×, Mid: 1×, Senior: 1.5×, Leadership: 2×). Estimates the value of institutional knowledge, relationships, and expertise lost when an employee leaves.

€3600.00

Institutional Knowledge€3600

€

Total Turnover Cost per Employee

€13874.64

39% of annual salary

Direct Costs€4251.57

Indirect Costs€9623.08

Cost Analysis

Direct Costs31%

Indirect Costs69%

Monthly Salary€3000.00

Annual Salary€36000.00

Cost Multiplier0.39x

Total Timeline

• Vacancy: 30 days

• Training: 60 days

• Full productivity: 60 days

Total: 150 days

💡 Key Insight

69% of turnover costs are indirect and often overlooked. These hidden costs (lost productivity, knowledge drain, team disruption) significantly impact business performance beyond the direct financial expenses.

Estimates based on Estonia labor regulations and industry benchmarks for Mid Level positions. Actual costs may vary based on company-specific factors. Use this tool to justify retention initiatives and strategic HR investments.