hw2 Emmanuel

calculate_attrition_cost <- function(
    
                            # Employee
                            n                    = 1,
                            salary               = 80000,
                            
                            # Direct Costs
                            separation_cost      = 500,
                            vacancy_cost         = 10000,
                            acquisition_cost     = 4900,
                            placement_cost       = 3500,
                            
                            # Productivity Costs
                            net_revenue_per_employee = 250000,
                            workdays_per_year        = 240,
                            workdays_position_open   = 40,
                            workdays_onboarding      = 60,
                            onboarding_efficiency    = 0.50
                            
) {
  
  # Direct Costs
  direct_cost <- sum(separation_cost, vacancy_cost, acquisition_cost, placement_cost)
  
  # Lost Productivity Costs
  productivity_cost <- net_revenue_per_employee / workdays_per_year * 
                       (workdays_position_open + workdays_onboarding * onboarding_efficiency) 
  
  # Savings of Salary & Benefits (Cost Reduction)
  salary_benefit_reduction <- salary / workdays_per_year * workdays_position_open
  
  # Estimated Turnover Per Employee
  cost_per_employee <- direct_cost + productivity_cost - salary_benefit_reduction
  
  # Total Cost of Employee Turnover
  total_cost <- n * cost_per_employee
  
  return(total_cost)
}
calculate_attrition_cost(n = 1, salary = 80000)

## [1] 78483.33

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