Where turnover hides in the budget
- Overtime lines inflated by vacancy coverage
- Recruiting, testing and background costs in HR budgets
- Academy and field training costs
- Leave payouts at separation
- Equipment reissue
Modeling the cost
Expected departures (headcount times turnover rate) multiplied by cost per departure gives an annual turnover cost. Comparing that figure with the cost of retention programs shows the break-even point.
Frontline's planning model uses national benchmarks: an 8% annual turnover rate, about $70,000 per departure, and a 2.7% retention improvement, plus Section 125 savings of about $1,230 per participating employee per year.
Best practices
- Follow GFOA budgeting best practices for multi-year personnel forecasting
- Separate vacancy overtime from event and court overtime
- Report vacancy rates and time-to-fill alongside the budget
- Evaluate retention programs over a multi-year horizon
Try the impact calculator
Frontline's calculator estimates one-year and five-year retention value and Section 125 savings for your agency based on participation — a starting point for budget conversations.
Sources and further reading
See what retention is worth to your agency.
Frontline's impact calculator estimates one-year and five-year retention value and Section 125 savings based on participation.