Cost of One Employee Turnover
Recruitment: $2,000
Training: $3,000
Lost productivity during training: $1,500
Management time: $500
Total: $7,000 per turnover
Before Automation
100 employees x 85% turnover = 85 turnovers/year
Cost: 85 x $7,000 = $595,000/year
After Automation
Same 100 employees x 28% turnover = 28 turnovers/year
Cost: 28 x $7,000 = $196,000/year
Savings: $399,000/year (from turnover reduction alone)
Robot Cost
3 robots x $20,000 = $60,000
Payback: Less than 2 months