David Carr decided to do a concrete analysis about how much is the true cost of replacing a developer. Apparently, management think the cost of replacing a developer is nil. But in real fact, he calculated that losing a good developer costs £37,500. Isn’t it obvious - they are being penny wise pound foolish not to give yearly increments. The total cost includes the following:
1) New employee salary £0
2) Agency fees (20% of salary) £6000
3) Time lost in interviews £8000
4) Development time cost (including handover) £20,500
5) Skills cap cost (productivity and training) £17,000
Total £37,500
