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Cost of Fragmentation Calculator
Discover the hidden costs of scattered Total Rewards systems and quantify the financial impact on your organization
Cost of Fragmentation Calculator
Discover the hidden costs of scattered Total Rewards systems and quantify the financial impact on your organization
1. Avoidable Attrition Cost
Formula: (# of regrettable leavers × average salary × 1.4) × 5%
Count only regrettable departures in the past 12 months
$
Replacement typically costs 1.4x the annual salary
Annual Attrition Cost
$70,000
2. Underutilized Benefits Cost
Formula: % unused × total benefits budget
$
Total spend on voluntary/discretionary benefits
%
Typical range: 15-30% for fragmented systems
Annual Underutilization Cost
$800,000
3. Administrative Burden Cost
Formula: HR hours per month × cost per hour × 12 months
hrs
Include data reconciliation, reporting, and inquiries
$
Include salary, benefits, and overhead
Annual Administrative Cost
$57,600
Total Annual Cost of Fragmentation
$927,600
Attrition Costs
8%
Underutilization
86%
Admin Burden
6%
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