The Recruiting Funnel Retention Impact Estimator translates a change in post-hire retention into an estimated number of additional retained employees and avoided replacement cost. It connects recruiting outcomes with what happens after hiring, helping teams evaluate whether changes in sourcing, screening, or candidate matching may have downstream workforce value.The model is most useful for scenario planning. Enter a cohort of hires, a baseline retention rate, an expected retention rate after a recruiting change, and an estimated replacement cost per lost employee. The result shows the incremental retention effect rather than total retained headcount, so it can be compared with the cost of the recruiting initiative being considered.
1. Set the hiring cohort
Enter the number of hires whose retention you want to model.
2. Add baseline retention
Use the retention rate for a consistent period, such as 12 months after hire.
3. Add the expected rate
Enter the retention rate you expect after the recruiting process change.
4. Estimate replacement cost
Enter the cost you assign to replacing one employee departure.
5. Compare the impact
Review additional retained hires and the corresponding avoided replacement cost.
Both retention rates must refer to the same post-hire time horizon. The cost result is a scenario estimate and excludes benefits not represented by the replacement-cost input.
If the retention improvement occurs as assumed, the cohort would retain about 12 more employees over the chosen retention period.
Use organization-specific retention and replacement-cost assumptions.
Given:
150 hires, 70% baseline retention, 78% expected retention, and $8,500 replacement cost per departure.
Calculation:
150 × (0.78 − 0.70) = 12 additional retained hires; 12 × $8,500 = $102,000.
Result:
Estimated avoided replacement cost = $102,000.
If the retention improvement occurs as assumed, the cohort would retain about 12 more employees over the chosen retention period.
Use a fixed period that matters to your organization, such as 6 or 12 months after hire. The baseline and expected rates must use the same period.
The estimator will show a negative impact, representing additional expected departures and added replacement cost rather than savings.
Use an internally consistent estimate that may include recruiting, onboarding, training, and vacancy-related costs. Avoid mixing different cost definitions between scenarios.
No. Retention is also affected by management, pay, job design, workload, and other factors, so this is a scenario model rather than a causal test.
Conversion measures how many candidates reach a hiring outcome. Retention impact estimates what a change in post-hire staying rates could mean for workforce continuity and replacement cost.