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Hidden business cost

Handover & key-person risk cost calculator

Estimate the hours and labor tied up when work changes hands — resignation, transfer, or role transition — plus the productivity dip while someone gets up to speed. A process estimate, not a promise of financial loss.

1. Handover volume

How many people are in this kind of handover. Example: 3.

Expected resignations, transfers, or role changes in a year. Example: 4.

2. Handover time

Time spent explaining, shadowing, or writing the handover itself. Example: 16 hours.

Share of handover hours when both the outgoing and incoming person are engaged at once. Already included in labor cost — not added again.

3. Labor cost

Loaded hourly cost of the experienced person. Example: 4000.

Loaded hourly cost of the person taking over. Example: 2800.

Display only. Amounts are not converted between currencies.

4. Ramp-up period

How much less effective the incoming person is while learning. Example: 30.

How many weeks that reduced productivity lasts. Example: 6.

Usual weekly hours for the role. Example: 40.

5. Knowledge risk

Optional. These percentages shape the load indicator and recommendations. They are not converted into money.

Optional. Rough share of important work that is not written down.

Optional. Rough share of important work that stops if those people are absent.

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.