4. THE CASE Given the vast number of employees, enormous expense in terms of rehiring and training is to be expected. For purposes of this exercise we presume that employee training pay is above the federal minimum and, more or less the average of state minimums, or about $6.50. We estimate that training time is three and half work weeks of thirty-six and half hours. Since Wal-Mart has about 1.7 million employees, a 60% turnover means hiring and training about a million new people every year. In addition to the cost of the trai nee we must add the cost of those doing the training. This would make annual training costs alone at Wal-Mart over a billion and a half dollars a year 5. CALCULATION THE HIGH COST OF LOW EMPLOYEE RETENTION: Wal-Mart in the United States* Category Imputation basis value Total employees Wal-Mart 2006annual report (rounded) 1,700,000 Turnover rate Wal-Mart 2006annual report (rounded 60% Total turnover Equals new employees each year 1,020,000 Weekly per new employee time $ values Imputed hourly rate Imputed starting base pay per hour $6.50 Average hrs/week Just below minimum for benefit eligibility 36.5 hours $237 Weeksto train Based on experience of minimal need 3.5 weeks $830 Weekly per experienced trainer time $ values Imputed hourly rate Average wage as per annual report per hour $10.25 Average hrs/week Maximum number before time & a half 40 hours $410 Weeksto train Based on half of new employee 1.75 weeks $718 Total cost to Wal-Mart Total for trainees Total turnover x total cost per trainee $846,600,000 Total for trainers Total turnover x total cost per trainer $732,360,000 Total $1,578,960,000