Employee Retention ROI Calculator

Employee turnover is one of the most expensive hidden costs for organizations.

When someone leaves, you don't just lose their productivity—you pay for recruiting, interviewing, onboarding, and the ramp-up time for their replacement.

Studies show this cost ranges from 50% to 200% of the departing employee's annual salary, making retention one of the highest-ROI investments HR can make.

The True Cost of Employee Turnover

Beyond direct replacement costs, high turnover impacts team morale, institutional knowledge, and productivity.

Remaining employees often pick up extra work, leading to burnout and potentially more departures. The ripple effects of attrition can be felt for months after someone leaves.

How to Improve Employee Retention

The first step to reducing attrition is understanding what's bothering your employees. What problems do they face? What frustrations go unspoken?

Research shows that psychological safety—the ability to speak up without fear of judgment or retaliation—is one of the strongest predictors of employee retention and team performance.

The challenge is that employees often won't share honest feedback openly, especially on sensitive topics like management issues, compensation concerns, or workplace culture problems.

That's where anonymous channels become essential. Tools like anonymous questions in Slack let employees voice concerns without fear.

A digital suggestion box shows employees their ideas are valued and creates a continuous feedback loop that helps you identify and fix issues before they lead to departures.

Small Retention Gains, Massive ROI

Even a modest improvement in your retention rate can translate to significant cost savings.

Reducing your turnover rate by just 5 percentage points on a 100-person team with average salaries of $75,000 saves approximately $375,000 annually.

That's money that can be reinvested in employee engagement, talent development, and building a workplace where people want to stay.