LPGE:CAT

Overview

LPGE:CAT stands for Labor Productivity Gap Equation: Cost of Avoidable Turnover. It is the financial model that translates the human cost of turnover into the language of the C-suite. For a mid-level behavioral health role, a single avoidable departure at Year 1 costs between $320K and $540K when recruitment, training, productivity loss, client disruption, and culture damage are fully accounted for. LPGE:CAT makes the investment in retention obvious.

Deployment Steps

1. 01

   Identify your three most expensive role categories by replacement cost.

2. 02

   Run the LPGE:CAT calculation for each: (Recruitment Cost) + (Training Cost) + (Productivity Loss × Ramp Time) + (Client Impact Estimate) + (Culture Damage Coefficient).

3. 03

   Present the total to your CFO — not as a people argument, but as a capital allocation argument.

4. 04

   Calculate your current annual LPGE:CAT exposure based on actual turnover in the last 12 months.

5. 05

   Use the number to build the business case for a retention investment that is a fraction of the exposure.