Cornell launches web-based Management Tool for Calculating Turnover Costs

A new web-based management tool published by The Center for Hospitality Research at Cornell has been developed to help lodging practitioners accurately compute all of the costs associated with the departure and replacement of an employee.

The tool, Turnover Cost Evaluator, was co-developed by Cornell Professors Timothy R. Hinkin, Ph.D. and J. Bruce Tracey, Ph.D. It comprises of seven screens that allow users to enter data that is specific to their organization and provides them with a detailed cost analysis of employee turnover. The tool can be used for assessing the turnover costs associated with a number of line, supervisory, and managerial positions. The program is robust and will allow users to modify their entries to examine a variety of scenarios. 

Currently, the tool is focused on the lodging industry, but it contains a food and beverage section that can be used by restaurants. The tool reflects the developers’ research and consulting activities in HR with a specific focus on turnover. Over time, the developers will be aggregating data to provide industry norms for such factors as wages, turnover rates, and training costs. Users will then be able to compare their results to industry averages.

“The key value of the tool is that it brings to light costs that are very often hidden or overlooked. Without the tool, companies may not be aware of how much they are spending on employee turnover, since the lodging industry average turnover rate for line level employees averages over 65% per year,” stated Hinkin.

“We are excited to make this management tool available to the industry via the Center’s website and establish industry benchmarks that can be used for diagnostic and planning purposes,” stated Tracey.

“The Evaluator provides HR and managers with the data and tools necessary to proactively manage their business, as well as make critical human capital decisions,” said Jo-Anne Kruse, Executive Vice President, Human Resources, Travel Distribution Services Division, Cendant Corporation.

The tool is available free of charge from the Cornell Center for Hospitality Research website (https://www.hotelschool.cornell.edu/chr/research/tools/turnover/).

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