The attrition cost calculator: what one resignation actually costs a Nigerian company

For a mid-level employee earning N4.5m per year in Lagos, a single resignation costs between N2.1m and N3.8m all-in — roughly 50–85% of annual salary. The waterfall breaks down as: recruitment agency fee (N600k–N900k if used externally), job board and interview costs (N80k–N120k), new hire onboarding and equipment (N150k–N200k), productivity loss during notice period (N250k), productivity ramp for the replacement over 90 days (N600k–N900k), and institutional knowledge loss that is impossible to price precisely but conservatively estimated at N500k–N1m for a three-year employee. Most companies track only the recruitment line.

In Nigeria specifically, the recruitment market for mid-to-senior roles has tightened significantly since 2023. Candidate pipelines are thinner, notice periods are frequently not served in full, and counter-offer rates have increased. This means both the cost of replacing someone and the time-to-fill have increased simultaneously — compounding the financial impact of each departure beyond historical benchmarks.

• Calculate your own attrition cost using real salary and recruitment data from your last 5 departures — most companies are significantly underestimating it
• Present the comparison clearly to finance: the annual cost of a recognition programme per employee is typically 2–5% of what one resignation at that level costs
• Track voluntary resignation rate as a financial metric with a dollar value attached, not just as an HR percentage