How we calculate it: cost of each exit = cost to hire + paid training time (weeks × weekly pay) + lost output while a new hire gets up to speed (weeks to full speed × weekly pay × 50%). Annual cost = cost of each exit × people leaving each year. Hourly pay assumes a 40-hour week. Sources: turnover rates are 2025 BLS JOLTS annual quit rates by industry for employees hired directly by employers, not temporary or staffing agency workforces, which typically see higher turnover (voluntary quits only, so layoffs aren't counted); default pay is BLS average hourly earnings by industry (August 2026): production and nonsupervisory workers for hourly, all employees annualized at 2,080 hours for salaried (government uses the all-industry average); cost to hire is the SHRM 2025 Recruiting Benchmarking average for non-executive roles ($1,200); training time (1 week hourly, 2 weeks salaried) and time to full speed (4 weeks hourly, 12 weeks salaried) are estimates. Results are planning estimates and leave out harder-to-measure costs like burnout, quality issues, and lost customers, so your real number is likely higher.