Leadership Development ROI Calculator

See how much your organization could benefit by preventing manager turnover and 
improving leadership performance in just 2 minutes.


ROI Calculator Assumptions & Sources
 
Default Company Profile Values:
  • Average Manager Salary: $95,000
  • Average Employee Salary: $65,000
  • Annual Voluntary Turnover Rate: 13% (Mercer 2024)
  • Average Team Size per Manager: 6 people (Gallup 2024 median)
  • Percentage of Managers Struggling: 30%
Direct Costs per Manager Lost:
  • Recruiting costs: $8,000 (industry average for ads, agency fees, screening)
  • Interview time: $3,500 (approximately 40 hours at blended rate)
  • Onboarding/training: $5,000
  • Lost productivity during 60-day vacancy: Calculated at 50% team efficiency loss


Indirect Costs per Manager Lost:
  • Team productivity decline: 20% reduction for 3 months for remaining team members
  • Knowledge/relationship loss: 15% of manager's annual salary
  • Cultural impact/morale: $5,000 (conservative estimate)
Source: Society for Human Resource Management (SHRM) - Manager replacement costs average 150% of annual salary
Underperforming Manager Cost Per Struggling Manager (Annual):
  • Excess team turnover: 15% higher turnover rate × 1.5× employee salary (replacement cost)
  • Lost team productivity: 15% reduction in team effectiveness
  • Manager's own productivity loss: 30% reduced capacity when struggling/overwhelmed
Sources:
  • Gallup Research: 70% of employee engagement variance is attributable to manager quality
  • Gallup Research: Teams with poor managers experience 2× turnover rate
  • Gallup Research: Engaged teams are 18% more productive
Coaching Investment:
  • Cost per leader coached: $5,000 annually
  • Number of leaders coached: Auto-calculated as total managers × % struggling (user adjustable)
Key Calculation Notes:
  • All cost estimates use conservative assumptions to avoid over-promising
  • ROI scales proportionally with number of managers coached
  • Calculation only attributes improvements to departments with coached managers
  • Does not include qualitative benefits (culture, engagement, succession pipeline, etc.)
ROI Calculation Methodology:
  • Conservative improvement assumption: 25% reduction in manager-related issues
  • Scope of impact: Only calculates benefits for managers actually being coached (not entire organization)
  • Prevented manager turnover: 25% of historical turnover rate, proportional to coaches managers
  • Improved struggling managers: 25% improvement in performance for coached managers only
  • Total benefit: Sum of prevented turnover costs + improved manager performance savings
Data Currency:
  • Turnover rate based on 2024 Mercer data
  • Team size based on 2024 Gallup median data
  • All industry benchmarks reflect current market conditions as of 2024