The worth of human capital

Resignations among your staff (human capital) is not as cut and dry as salary. A reasonable way to think about the investment in existing human capital is:

Time to get up to speed x (Salary + Overhead) x 50%

It’s important to think about the domain knowledge lost when a team member resigns along with ramp and recruiting costs1.


DeMarco, T. Slack: Getting Past Burnout, Busywork, and the Myth of Total Efficiency. (Currency, New York; London, 2002).