The Great Canadian Turnover and Pay Raise Calculator

How much is employee turnover costing your business?

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The Turnover Calculator

Based on Go Tours Canada, this employee turnover calculator is designed to give you insight into some of the economic costs of turnover at your business.

Every time you lose an employee, there are training costs, lost sales, and many other small costs associated with ending that person’s employment.

We have put together this Turnover calculator to help businesses understand these costs.  Tied together with our Pay-Raise Calculator, you can evaluate how turnover and pay increases are related to each other. 

Access the online Canadian Business Turnover Tool

The Pay Raise Calculator

The last couple years have emphasized cost of living as a great barrier for many people.

Many businesses are considering how they can increase pay to stay competitive and make sure their employees are able to afford living.

The Better Way Alliance Canadian Pay Raise calculator is designed to give you a definitive tool to calculate a round of raises.  A strategic pay raise can help avoid high turnover and ensure you keep your best staff.  Find out just how affordable raising can be vs. high turnover.

Download our Canadian Business Pay Raise Calculator

Turnover and Pay Raise Calculator Guide

Now that you have your two key numbers (total turnover cost, total wage increase cost), you have a lot of information to make decisions about your retention strategy. 

 
To figure out how much you might save if you invested in compensation as a pillar of your retention strategy, compare the turnover cost with wage increase cost. 
 
Which is higher? 
 
If turnover cost is higher, subtract as follows: 
(Total Turnover Cost – Total Wage Increase Cost) =  Total Savings from Pay Increase Strategy
 
In other words, by spending more on wages, you avoid turnover expenses, so you save money. 
 
If wage cost is higher, consider: 

    • Remember the turnover tool is per employee lost. Which cost is higher if you lose two or three employees? What if your turnover rate mirrors the industry standard?

    • Which cost is higher if you were to increase wages for just the lowest pay grade on your payroll?

    • Which cost is higher if you were to increase wages for just the pay grades below a Living Wage? Check them out at https://www.livingwage.ca/rates.

Remember that these numbers are estimates only. These tools depend on assumptions you make about your business and your past performance. These tools are intended to provide guidance and help inform your decision-making, and should not be taken as professional advice.