Question

Employees turnover

Healthcare employees make 112 $ per hour on average. They normally work 8 hours per day. Use this information to calculate retaining employees’ costs. Some of the cost will not be relevant in your analysis. please provide some details and explaining.

Hiring New Staff:
Marketing costs per employee: 19,000
Pay for relocation per employee: 19,000
Training per employee: 375,000
Nonproductive hours due to fatigue per employee during the training period (current staff) per employee: 37,000

Retaining Employees:

Productive Time
260 days at 10 hours per employee

Nonproductive Time
Paid Annual Leave: 21 days per employee
Spouse Death (male employee): 5 days per employee
Spouse Death (female employee): 15 days per employee
Marriage Leave: 5 days per employee
other Leave: 30 days per employee (one month)
Sick Leave: 30 days per employee
Maternity Leave: 30 days (6 weeks) per employee
Paternity Leave: 3 days per employee

Answer 1

Pre-Departure costat (por employee] - was of productivity Dayor worked Amant 260 X O $112 2,91,200 Recniting Expenser - (por Employee) - Marketing costs : 19,000 relocation costs: 19,000 Training costs : 375,000 $ 4 13,000 Total cost of turnover (partmployee → pre-departure costs - Recruting costs ($) 9,91.200 4 18,000 $ 704 200 por Employee Notes I von poroductive hours due to foligue are not taken part in calculating Employee cast as the same is cannot be compared & Evaluate an poroduction rates as there loence are already anhesent in the locs of productority due to recruiting new Employees over retaining fimployeen!

Non Productive time is not considered in calculating Employee Cost as their probability was not known .However Non Productive time for paid leaves assumed as :- effect was already inherent and considered in given production time for Retaining employees.