The Cost of Conflict: Quick Calculator | |||||||||||||||
A directional estimate to spark discussion and prioritize action. Created by ABD ventures. | |||||||||||||||
Enter your best estimates in the yellow cells. Subtotals and totals will auto-calculate. | |||||||||||||||
1. Turnover | |||||||||||||||
Total number of full-time employees | |||||||||||||||
Number of managers and executives who left due to conflict (last 12 months) | |||||||||||||||
Number of staff who left due to conflict (last 12 months) | |||||||||||||||
Approximate managerial salary | |||||||||||||||
Approximate staff salary | |||||||||||||||
Turnover Subtotal | |||||||||||||||
2. Absenteeism & Stress | |||||||||||||||
Number of sick leave days per person | |||||||||||||||
Annual cost (number of days more than 5 per person x daily rate) | |||||||||||||||
3. Grievances, Complaints & Legal | |||||||||||||||
Number of formal complaints / grievances without legal staff time (last 12 months) | |||||||||||||||
Of these, how many involved legal resources as well | |||||||||||||||
Cost of one grievance | |||||||||||||||
Legal costs associated with a grievance | |||||||||||||||
Grievances Subtotal | |||||||||||||||
4. Manager Time Drain | |||||||||||||||
Total number of managers | |||||||||||||||
Estimated % of manager time spent on conflict | |||||||||||||||
Manager Time Subtotal | |||||||||||||||
Estimated Annual Cost of Conflict: | |||||||||||||||
Notes: | |||||||||||||||
• Calculations with salaries will include 1.5 multiplier to account for roll-up costs. | |||||||||||||||
• Assume average management to staff ratio is 1:6. | |||||||||||||||
• Each grievance requires 2 months of a staff person. | |||||||||||||||
• If legal resources are involved, 1 month of attorney pay, $200 per hour. | |||||||||||||||
• We assume costs of turnover are 50% of employee's annual salary. Reserach estimates 50-80% and higher. | |||||||||||||||
• We assume average sick leave is 5 days a year—for most US residents it is lower. | |||||||||||||||
Turnover: https://www.creditdonkey.com/average-turnover-rate.html | |||||||||||||||