Employee Retention Cost Calculator

Calculate Employee Retention Cost (ERC)



Formula

The formula to calculate the Employee Retention Cost (ERC) is:

\[ \text{ERC} = \text{QW} \times \text{RCR} \]

Where:

What is Employee Retention Cost?

Employee Retention Cost (ERC) is a measure used to calculate the cost incurred by an employer to retain employees. It is determined by multiplying the qualified wages paid to employees by the retention cost rate. This calculation is significant for employers to understand the financial impact of employee retention programs, particularly during economic disruptions where incentives are provided to retain employees.

Example Calculation

Let's assume the following values:

Using the formula to calculate the Employee Retention Cost:

\[ \text{ERC} = 50000 \times 0.70 = 35000 \]

The Employee Retention Cost is $35,000.