Why Handover Costs Are Often Underestimated
When an employee gives notice, productivity losses begin immediately and continue well after their departure. Studies show that departing employees often work at only 50–70% of their normal effectiveness during the notice period, as focus shifts to handing over tasks rather than delivering results. Simultaneously, the colleague receiving the handover carries an additional 20–30% workload, reducing their own output during the transition.
This calculator estimates two components: the productivity loss from the departing employee (daily salary × handover days × drop rate) and the extra workload cost for the receiving colleague (30% of their daily rate × coverage days). These costs are separate from — and should be added to — recruiting and training costs to get the full picture of what a departure costs your organization.
Frequently Asked Questions
For most complex roles, no. Two weeks is often insufficient to document processes, transfer relationships, and train a replacement. Many companies negotiate a longer transition period for senior or specialized roles.
Key deliverables include: process manuals, active project status reports, stakeholder contact lists, login credentials (via secure channels), and recurring task calendars. A well-structured handover document dramatically reduces post-departure disruption.
In the US, employment is at-will in most states, meaning employers cannot typically force a specific notice period. However, contractual notice clauses and professional standards often set expectations. Incentivizing a smooth handover is generally more effective than legal pressure.