Turnover

Nat · February 2002

Does anyone have a good way to calculate turnover? I am trying to get overall turnover and site specific. Any help is appreciated.
Nat

heights · February 2002

A "quick and dirty" way is to add up the total # of employees you had/have for the period you want to measure and then add up the number of employee who terminated during the same period. Divide the # terminated by the total # you have/had and that is your turnover percent.

Margaret Morford · February 2002

Nat,

If you are looking for trends (which is really the only reason you should be measuring turnover), I'd classify your turnovers into categories, like Voluntary Undesirable (those lost to other jobs), Performance Issues, Lack of Work and Life Choices (to return to school, stay home with children, care for a sick family member, transfer of spouse, retirement). You do not want to use the last two categories in looking at trends. I hope you wouldn't talk someone out of returning to school, staying home with their children, etc. The first two are really the only ones you can impact with retention efforts, training efforts or better selection procedures.

Margaret Morford
theHRedge
615-371-8200
[email]mmorford@mleesmith.com[/email]
[url]http://www.thehredge.net[/url]

Helena · February 2002

Hi Nat:

Here is the formula I use for our company. Select a department. Use
an actual number or, lacking exact statistics, estimate the number of
people who left the department during the past 12 months. Write that
number below on line 4.

The average cost of turnover is 25 percent of an employee's annual salary (Line
1)plus the cost of benefits (Line 2) you provide. Typical benefits amount
to about 30 percent of wages. The total cost per employee (Line3) is the total
of Line 1 and Line 2.

Based on an employee earning $9.00 an hour.......

1. Annual Wage: $18,720 X .25 = $4,680
2. Annual Wage: $18.720 X .30 = $5,616 X .25 = $1,404
3. Total turnover cost per employee (Add Line 1 and 2): $6,084
4. Total number of employees who left the department: 12
5. Total cost of turnover (multiply lines 3 and 4): $73,008

Hope this helps!

bforce · February 2002

Hi - For our annual turn over rate, we use this formula:

number of voluntary terminations divided by number of employees at the end of the year. (We separate the number of involuntary terminations and lay-off numbers). This gives us the unavoidable terminations, employees decided to leave on their own for a variety of reasons.

And, we calculate the turn over rate with all terminations, including lay offs.

I'd love to hear comments about this formula. Thanks!

Turnover

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