Saving money has never been easier!

Want to find a cost-effective way of retaining your talent?
Look no further than a Financial Wellness provider!

Discover how Jify can help you unlock employee productivity while increasing your organisation’s output!

What is employee turnover?

Employee turnover is defined as the number of employees that leave a particular organisation during a given period of time.

Employees sometimes voluntarily leave the organisation in search of better benefits including, higher financial security.

A high employee turnover can be a huge expense incurred by organisations in replacement hires and potential skill gaps!

Monthly
Turnover %

Employees who leaves

Average number of employees

100

Here’s a simple formula to calculate your employee turnover

Retention savings calculator

Boost retention by offering Jify’s Financial Wellness benefits to your employees.
Calculate the savings you can expect when you partner with Jify!

Total number of employees

Average Monthly Salary at your organisation

Current employee attrition rate

Estimated annual savings on:

Savings in turnover cost

Savings from lost productivity

Impact on your bottom line

Retention Savings FAQs

About Jify

At Jify, we enable you to empower your employees with their money, when they need it. With us, you partner with the ultimate tool for improving employee retention, engagement, and Financial Wellness.

Savings on Employee Retention

The cost of hiring a new employee is more than retaining an existing one, and this is not just limited to the higher salary offered to new recruits! The HR resources and time involved in hiring a new employee are often overlooked while calculating the savings on employee retention. Most calculations only consider the savings on negotiated salary and perks, whilst keeping the costs of recruitment, acquisition, and opportunity constant.Using a tool such as an employee retention savings calculator can help evaluate capital saved quickly and easily.

What is attrition replacement cost?

Attrition replacement cost is the amount incurred while hiring a new employee as a replacement for an exiting employee. In simple terms, it is the cost of hiring an employee.

How to calculate attrition replacement cost?

Attrition replacement cost can be easily calculated through a unified formula. Before moving to the formula, it is essential to factor in a few metrics:

Average Attrition Rate

Average attrition rate determines the total number of employees that have left the company in a specific time period.

Average Monthly Salary

This is the average monthly salary of the resource that is to be replaced. Through this metric, the new employee’s monetary ask can be evaluated.

Attrition Replacement Cost %

Either of the following metrics can be used for determining the attrition replacement cost %:

1.Average cost incurred in the previous year for hiring an employee’s replacement + inflation ‍
2.An industry standard published in a credible whitepaper ‍

To calculate the attrition replacement cost, the following formula can be considered:
Recruitment cost for hiring a new employee
= [(Attrition Replacement Cost %) X (Average Daily Salary) X 356]

Let’s consider an example for a better understanding of the formula:

Average Attrition Rate: 20%

Average Daily Salary: ₹700

Attrition Replacement Cost: 50%

‍

Recruitment cost for hiring a new employee

= [(Attrition replacement cost %) X (Average Daily Salary) X 356]

= [(50 %) X (700) X 356]

= ₹1,27,750

The importance of calculating employee retention cost savings

The workforce is the most abundant and expensive resource for any company. That’s why it’s a common business practice to evaluate the investment in human capital and derive results accordingly.

Calculating the savings from employee retention can help businesses make better resource management decisions. By evaluating the industry/previous years’ recruitment costs, businesses can underwrite a cap to the efforts required for retaining employees, leading to smarter investment planning and growth prediction.