ROI Metric:
turnover
Calculation
Voluntary turnover reduction
Replacement cost factor
Average Trainee Salary
turnover returns
Voluntary turnover reduction: The decrease in voluntary turnover likelihood for employees enrolled in the Chefshealth program.
Replacement cost factor: An estimation of all expenses associated with replacing an employee
Average Trainee Salary: Salary sets the base for estimating the cost of absence.
Explanation and sources
Voluntary turnover reduction
We use a 17% voluntary turnover reduction estimate for employees enrolled in our program. That's derived from Pathway to Health and Productivity 2011/2012 Staying@Work™ Survey Report from Towers Watson and the National Business Group on Health, comparing voluntary turnover in companies with highly-effective health programs vs low-effectiveness programs (6.4% vs 7.7%).
Turnover difference (1.3%) = 17% change
This is considered quite a conservative value. For example, according to Harvard Business Review, organizations with highly effective wellness programs report a roughly 40% improvement in voluntary attrition compared to those with less effective programs (9% vs. 15%).
Addtionally, both of the previous references compare companies with existing wellness programs, so organizations without a wellness initiative are most likely to experience significantly higher turnover.
An effective wellness program can boost employee engagement and bring turnover to a minimum. Here's another testimony of that:
"Nelnet, an education finance firm, asks departing employees in exit interviews what they will miss most; the number one answer is consistently the wellness program."
Replacement cost factor
We use a 50% replacement cost estimate for employees, based on SHRM Foundation's Effective Practice Guidelines Series, Retaining Talent: A Guide to Analyzing and Managing Employee Turnover. This widely cited guideline notes:
"Research suggests that direct replacement costs can reach as high as 50%-60% of an employee's annual salary, with total costs associated with turnover ranging from 90% to 200% of annual salary."
Replacement costs include far more than hiring expenses alone. They combine direct costs (separation, recruitment, onboarding/training) and indirect costs (lost productivity, knowledge loss, morale impact, missed opportunities). For example, hiring managers' time, reduced output while a new hire ramps up, and cultural disruption to a team all contribute to the total expense.
Retention is not just about reducing costs. The idea that “everyone is replaceable” is a myth. Replacing experienced, well-integrated or high-performing employees damages team morale, disrupts workflows, and erodes institutional knowledge. These impacts extend beyond the balance sheet and directly affect service quality, customer experience, and long-term organizational stability. Keeping someone at work through targeted intervention costs a fraction of replacing them.
Average trainee salary
This is the average salary of employees to be enrolled in the program, provided by you as input to the ROI Calculator. It sets the financial baseline for estimating the cost of turnover. Since turnover costs are calculated as a percentage of payroll, knowing the trainee salary allows us to quantify the monetary impact of turnover for your organization.
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