Cost of Fragmentation Calculator
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%
Ready to Eliminate These Hidden Costs?
Discover how Semos Cloud's Total Rewards Hub can unify your systems, make your investments visible, and deliver measurable ROI.
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