What handover cost means here
Handover cost in this tool is the labor spent transferring work plus the productivity that is missing while the incoming person ramps up. It covers resignation, internal transfer, and role transition. It does not diagnose an employee, and it does not claim a guaranteed financial loss.
Why knowledge concentration creates hidden cost
When important work lives in one person's head, every exit or move repeats the same explanation. Undocumented steps and key-person dependency do not automatically become a yen or euro figure here. They raise the continuity load and point to where a written process would help.
How the estimate is calculated
The engine is deterministic and does not depend on language. Overlap is shown as simultaneous hours and is already included in base labor cost.
- Annual handover hours = people × events per year × hours per person.
- Base handover labor cost = those hours × outgoing hourly cost + the same hours × incoming hourly cost.
- Ramp-up hours = people × events × ramp-up weeks × weekly hours. Productivity-loss hours = ramp-up hours × reduction percent.
- Total annual transition cost = base handover labor cost + productivity-loss hours × incoming hourly cost.
Direct handover time versus ramp-up loss
Direct handover time is the hours spent transferring: meetings, shadowing, and write-ups. Ramp-up loss is later: the incoming person is working, but at reduced effectiveness, for the weeks you enter. Both can be large. They are counted separately so one does not hide the other.
Documentation risk
If you enter a high share of undocumented work, the main bottleneck can become a documentation gap. The tool then suggests operating procedures, a handover checklist, a shared knowledge base, and recurring reviews. That percentage is not priced.
Key-person dependency
Key-person dependency means important work stops or slows when one person, or a very small group, is unavailable. The indicator supports backup, cross-training, an ownership matrix, and shared access governance. It is not a legal or regulatory finding.
Improvement ideas in the simulation
The detailed result can compare the current baseline with three simulations: 20% fewer handover hours, 25% shorter ramp-up, and both together. Those percentages are model assumptions on this page, not published industry averages.
Limitations
Outputs follow your inputs. Currency is a display label, not a conversion. The 0–100 figure is a continuity and handover-load indicator, not an actuarial or scientific risk score. Waiting, culture, and legal exposure are out of scope.
FAQ
Do I need an account or employee names?
No. The calculator does not ask for names, email, or a company name.
Why is overlap not added on top of labor cost?
Both people's hours are already fully counted in the base cost. Adding overlap again would double-count the same time.
Does undocumented work increase the money total?
No. Documentation and key-person percentages affect the indicator, bottleneck, and recommendations only.
Are the scenario savings guaranteed?
No. They are a simulation labeled as such. They are not a forecast and not a benchmark.
Is this HR or legal advice?
No. It is a business-process estimate for discussion.
Related
Other BizNavi Hub surfaces you can open without this estimate.