Expected voluntary departures equal headcount multiplied by the annual voluntary turnover rate. Each departure and replacement is costed at a fixed amount. This turnover and replacement cost is calculated separately from the additional cost of any mis-hires.

Model assumption: 9.9% annual voluntary turnover by default and $60,000 for each departure and rehire. The addressable share is editable.

Every employee loses time to interpersonal conflict each week, valued at their hourly rate across the productive working year.

Basis: 2.8 hours per employee per week. The model counts 30% as behaviorally addressable. Source: CPP Global.

A share of the workforce is disengaged, and each disengaged employee produces less. The model applies this cost to a conservative disengaged share of headcount.

Basis: disengagement is modeled at 18% of salary for 17% of the workforce, with 25% treated as addressable. Source: Gallup.

Managers spend part of each week addressing clashes, underperformance, and repeated communication. That time is valued against estimated manager compensation.

Basis: manager compensation is estimated at 1.5 times average employee salary. Seventeen percent of manager time is allocated to friction, with 40% treated as addressable. Source: Robert Half.

A selected share of voluntary departures is replaced. The model assumes 15% of those initial replacement hires are mis-hires. Each mis-hire requires one additional hire, increasing the total number of hiring decisions required to restore headcount.

Model assumption: 100% of voluntary departures are replaced, 15% of the initial replacement hires are mis-hires, and each mis-hire costs 33% of average salary. Follow-on replacement hires are not recursively assigned another mis-hire rate. The addressable share remains editable.