Turnover Cost Model

Center for Employment Opportunities (CEO) is a nonprofit organization that provides immediate, comprehensive, and effective employment services for men and women returning from incarceration. Like many nonprofits, CEO manages a double bottom line: aiming to achieve social outcomes while sustaining financial viability. High staff turnover can undermine a nonprofit’s mission by directing funds away from service provision towards costs associated with separation, replacement, and training of new employees. CEO enlisted a Capstone team to explore how staff turnover impacts management decisions, placement data, direct and indirect costs, and additional aspects of its operations. The team provided CEO with a structured methodology conveying the monetary value of human capital investment; specifically how addressing employee turnover can allow CEO to achieve the goals associated with their double bottom line more efficiently. The team also developed a model for CEO to be able to address future turnover.