formula for employee turnover
hrpats
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Can you provide me the formula for computing the employee turnover rate.
hrpats
1 Post
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So, If I have 167 jobs in this plant and 9 people left during the month, the rate would be 9 divided by 167 X 100 or 5.389%.
You may want to do a search of this site for the topic 'turnover rate'. We've had good discussions.
That's why it's best to look at turnover as a 12 month moving average, which averages your turnover each month during a never-ending 12 month rolling period.
Turnover rates, in and of themselves, mean...well, they actually mean nothing at all. Give me a turnover figure and I'm gonna want to know: which departments, what age groups, how many died, how many were retirements, how many were in orientation, how many quit, how many were fired, how many left for better pay and benefits, how many were rehires.
Another of my famous surveys reveals that, on average, 88% of the people asking for turnover rates are accounting types or have that background and of that number, 97% have no idea what they will do with the answer to the question. x:-)
I calculate our turnover ratio as the number of staff who leave divided by the total number of approved staff positions in the organization (i.e., the full staff complement). I exclude from this calculation interns, freelance temporaries, EEs who were still in their initial 90 day probationary period when they left, and layoffs (i.e., positions that are eliminated from the organization): everyone else counts-- whether they resigned, were fired, died, etc.
We are a small organization (64 total staff), which makes the calculation a little simpler for us; and also our turnover in any given month is small enough that I'm not calculating turnover on a monthly basis at this time, only yearly.
>If you had 100 positions and lost 10 people per
>month, all year long, your monthly rate would be
>10% each month and your average monthly rate
>would be 10%, but your true annual turnover rate
>would be 100%, since the number leaving equalled
>the total number of positions. And if one of
>your corporate beancounter types asked what the
>total turnover for a 24 month period was (and
>don't put it past them), you'd tell him 200%,
>not that he could do anything with that
>information.
>
>That's why it's best to look at turnover as a 12
>month moving average, which averages your
>turnover each month during a never-ending 12
>month rolling period.
>
>Turnover rates, in and of themselves,
>mean...well, they actually mean nothing at all.
>Give me a turnover figure and I'm gonna want to
>know: which departments, what age groups, how
>many died, how many were retirements, how many
>were in orientation, how many quit, how many
>were fired, how many left for better pay and
>benefits, how many were rehires.
>
>Another of my famous surveys reveals that, on
>average, 88% of the people asking for turnover
>rates are accounting types or have that
>background and of that number, 97% have no idea
>what they will do with the answer to the
>question. x:-)
Anyway, I calculate "employee retention percent" - how many who were here a year ago in any given month are still here 12 months later. It's quick and dirty, and I haven't yet run across temps (temp agencies aren't counted, but we hired some walk-ins directly on our payroll as temps), but I will probably toss them out, too.
A wise man once told me "Not everything that can be measured should be measured, and not everything that should be measured can be measured."