Auto Calculate Fied in Salesforce

FIED (Financial Impact of Employee Departure) is a critical metric for HR and finance teams to assess the financial consequences of employee turnover. This guide explains how to automatically calculate FIED in Salesforce using workflow rules, formulas, and reports.

What is FIED?

FIED measures the financial impact of an employee leaving the company. It considers factors like:

Recruitment costs
Training expenses
Productivity loss
Replacement costs
Potential revenue loss

Calculating FIED helps organizations make data-driven decisions about employee retention strategies and budget allocation.

How to Calculate FIED

The basic FIED formula is:

FIED Formula

FIED = (Recruitment Cost + Training Cost + Productivity Loss) + Replacement Cost - Potential Revenue Loss

Where:

Recruitment Cost = Average hiring cost for similar roles
Training Cost = Average training cost for the role
Productivity Loss = Estimated daily productivity loss × Average working days
Replacement Cost = Cost to replace the employee's work
Potential Revenue Loss = Estimated revenue loss due to employee departure

Note

FIED calculations should be customized based on your organization's specific needs and industry standards.

Salesforce Implementation

Step 1: Create Custom Fields

Add these custom fields to your employee object:

Recruitment_Cost__c (Currency)
Training_Cost__c (Currency)
Daily_Productivity_Loss__c (Currency)
Replacement_Cost__c (Currency)
Potential_Revenue_Loss__c (Currency)
FIED__c (Formula, calculated as shown below)

Step 2: Create Formula Field

Create a formula field named FIED__c with this formula:

Salesforce Formula

Recruitment_Cost__c + Training_Cost__c + (Daily_Productivity_Loss__c * 260) + Replacement_Cost__c - Potential_Revenue_Loss__c

(Assuming 260 working days per year)

Step 3: Set Up Workflow Rules

Create workflow rules to automatically calculate FIED when:

An employee record is created or updated
An employee status changes to "Terminated"

Step 4: Create Reports and Dashboards

Build reports and dashboards to track:

FIED by department
FIED trends over time
High-risk employees based on FIED scores

Example Calculation

For a senior software developer:

Recruitment Cost: $15,000
Training Cost: $3,000
Daily Productivity Loss: $1,200
Replacement Cost: $20,000
Potential Revenue Loss: $50,000

FIED = $15,000 + $3,000 + ($1,200 × 260) + $20,000 - $50,000

FIED = $15,000 + $3,000 + $312,000 + $20,000 - $50,000 = $300,000

Interpretation

This $300,000 FIED score indicates a significant financial impact if this senior developer leaves the company.

FAQ

What is the difference between FIED and turnover cost?

Turnover cost typically refers to the direct costs of replacing an employee, while FIED includes both direct costs and the broader financial impact of the departure.

How often should FIED be recalculated?

FIED should be recalculated whenever there are changes to recruitment costs, training programs, productivity metrics, or potential revenue projections.

Can FIED be calculated for contractors?

Yes, the same principles apply to contractors, though you may need to adjust the productivity loss calculation based on their specific engagement terms.