The Busy Firm. Revenue capacity lost to turnover rose from $138K to $387K a year as regretted departures piled up. If nothing changes it reaches about $453K. The firm's Rock is expected to bring it down to about $150K by February.
Illustrative. Juniper Ridge Advisory is a fictional firm with a full year of modeled data, analyzed the way we analyze yours.
How to calculate it
For each departure, add up the weeks the seat sat empty, half of the new hire's ramp-up weeks, the training time pulled from others, and the recruiting cost. Convert the lost hours to revenue at your revenue per delivery hour, then annualize.
A consultant's seat sits empty for eight weeks, and the replacement takes eight more to reach full speed, so about 12 weeks of capacity are lost. At 30 delivery hours a week and $160 of revenue per delivery hour, that's about $58,000 before recruiting costs.
Turnover is discussed as an HR issue, not a growth issue.
Keep people out of sustained overload, speed up onboarding, and back up every key client relationship.
Time from leaders, and sometimes money for pay or support.
The early warning. Months spent above a healthy utilization range usually come before the next resignation.