Principia

Replacement Cost

operationalpure operational · attrition · currency · organization

The average cost to hire and fully onboard a replacement for one departed employee.

How it’s computed

Formula
Cost-per-hire + onboarding and training costs per replacement
Measurement model
operational (a formula over systems data) — not a reflective survey scale; “reliability” here means data quality, not internal consistency
record grain →← summary (lossy)financecost_per_hireΔt 12mofinanceonboarding_training_costΔt 12mocost per hirex̄onboarding + trainingper replacementx̄Replacement Costι
Fig. How Replacement Cost is built — data sources → actions → metric, read left to right. The grain boundary marks where record detail becomes a summary.

What it operationalizes

This metric measures the construct(s) below from operational data. Through them, it connects to the meta-analytic relationship network — the bridge from what you measure operationally to what the science knows.

Use it

Track Replacement Cost and its drivers in the People Analytics Toolbox — the registry’s evidence wired into deployable measurement.

Related metrics

Cost of Turnover

The total cost incurred by the organization to replace employees who left during a period.

Impact of Loss Score

A rating of how detrimental a particular employee's departure would be to the organization.

Programmatic access: /api/v1/metrics/metric.replacement_cost · /api/v1/evidence-statements?construct=construct.costs.