Companion to: Business Operator's Blueprint Chapter 14 - Workbook tab Ch14 · Labor Economics ROI
Inputs — Current State
Target State
Outputs
Cost per hire (all-in)--
Current annual departures--
Target annual departures--
Current turnover cost / yr--
Target turnover cost / yr--
Direct savings (turnover)--
Investment (wage + train + mentor)--
Year-1 net benefit--
Reading the result. The labor-economics math typically favors the high-pay model when GSS / service-quality benefits are also counted. The numbers above are direct only — add the service-quality lift (Ch 12 hospitality operating loop) and management-time recovery for the full picture. Costco, Disney, and Four Seasons all run materially below industry-typical turnover and post equally above-typical sales / RevPAR / margin metrics.