I’ve struggled with this topic for awhile – how to quantify when someone leaves your team or company – what is the impact to you, to start all over again, even with the best of best hires.
NOTE: THIS IS NOT A SCIENTIFIC OR PROVEN FORMULA.
The biggest hurdle is always the investment through training, domain knowledge and overall cohesion with the team. Measuring your external training investment is easy, but measuring internal training, knowledge transfer, etc over the course of their employment with you is very difficult.
- X is the amount that you invest in this resource from an external training perspective.
- Y is the overall % growth of internal training an employee has received year over year. This can be different for every organization and there could (and probably is) a very complex formula behind it – but selecting this variable is up to you.
- Z is the number of years that they have been employed with the company.
(X*Z) + ((Leaving Employee’s Salary * Y) * Z)