Managing staff turnover for many companies means managing the staff themselves. “The main thing is that people don’t leave,” they say in such companies. However, low turnover can lead to stagnation of blood in the organization. How to calculate the norm?
Once upon a time guide production company proudly told recruiters: “We have no staff turnover.” Of course, the managers exaggerated slightly; people sometimes left, for example, to retire. But for some reason no one wanted to move to other companies. “On closer acquaintance with this company, it turned out that the employees were simply overpaid,” says Valery Polyakov, president of the Metropolis personnel association. “For the same money, managers could hire the same number of more valuable specialists from outside.” A low turnover rate may also mean that low demands are placed on employees, causing people to work at half capacity. “An HR manager or line manager should be a “gardener” and periodically pull out weak plants and weeds in his company,” says Mr. Polyakov.
In Russia, in the manufacturing sector, a turnover rate of about 10% is considered ideal. In an actively growing business, especially at the stage of mass hiring, the turnover rate may be higher and amount to just over 20%. In retail, restaurateurs and insurers, 30% annual turnover is not a concern, and for some retailers even 80% turnover is considered normal.
In Moscow, St. Petersburg and others Russian cities with a large labor market, average rates across all industries range from 10% to 20%. And in a small provincial town, this figure may drop to 5% only because there are fewer job options in that area.
Strictly speaking, different departments in the same company may have their own turnover rates. According to the administrative director of the Lebedyansky holding, Mikhail Kalashnikov, this is due to the so-called employee efficiency period - the period of time during which a person fully reveals his potential in a particular position. For example, for a sales representative, according to Mr. Kalashnikov, the period of effectiveness is one and a half to two years. If a person has not proven himself during this period and has not grown in his career, it is better to part with him. For production departments and management, the period of effectiveness can last for years. Here the turnover level should be lower – 5–10%.
And for categories of employees in which career growth is not provided (for example, cleaners), the turnover rate is usually not considered at all, since the change of such employees has little impact on the business.
Since the turnover rate depends on many factors (the specifics of the business, the territorial location of the company, etc.), each company needs to calculate its ideal level of personnel turnover. But first, it’s worth dividing employee departure into active—when people leave the company for reasons at will, and passive – related to the desires of employers. Ideally, fluidity should only be passive. However, many companies consider this type to be a simple dismissal, and by turnover they only mean employees leaving of their own free will.
There are few methods for calculating the flow rate. Most often it is determined approximately, “by eye”. Company representatives consult with recruiters and learn generally accepted norms for the industry. The specifics of the business are not taken into account.
A more “advanced” method is benchmarking. You can see how many employees left companies operating in a given business during a specific period and calculate the average. The benchmarking method can only be used where firms provide such data to other market players. Most often this is possible within industry pools or associations. According to the head of the personnel service of the PIR group of companies, Svetlana Odegova-Shirybanova, the 30% norm for the restaurant industry was calculated in exactly this way.
You can use the so-called bell curve to calculate fluidity. In efficiently operating companies, after a planned assessment of all personnel, the picture of employee qualifications looks like this. 40% of the entire staff are “strong average”, 20% are those who have proven themselves “above average”, another 20% are “below average”, 10% are “outsiders” who have not made themselves known at all or very weakly, another 10 % – “stars”. According to the head of the HR department at KASIS, Yuri Gorkovenko, it is the last two categories of employees that actively influence the level of turnover. 10% of outsiders have a high chance of being eliminated. 10% of “stars” are a potentially dangerous group. If such employees are not given the opportunity for further growth and development in the organization, they may quit on their own.
To more accurately determine turnover rates, it is necessary to take into account everything business features, including the number of people who may not pass certification, the natural departure of staff (for example, retirement or maternity leave), as well as the seasonality factor (the number of layoffs may depend on the time of year). “We are able to predict turnover with a 90 percent probability,” says the vice president of general issues Alliance "Russian Textiles" Olga Smirnova - but at the same time we have to take everything into account, including maternity leave and early pensions. To eliminate the seasonality factor, we organized year-round uniform supplies of raw materials. Now this point can be ignored when calculating."
Favorable calculations.
Everyone knows that high turnover is evil: the company has to constantly spend money on searching and recruiting personnel, training and adaptation. A low level of fluidity is also not ideal - this leads to “blood stagnation”. New people bring new ideas and approaches, which makes business more efficient.
But before starting “weeding the garden,” managers should calculate the expected losses and gains from personnel changes. First, you need to determine the development potential of an outsider employee. There are various technologies for this, the most comprehensive is the assessment center, which helps predict the possible progress of each employee. Involved consultants or HR managers evaluate personnel during special tests and make assumptions about the capabilities of each person. The annual assessment center session in a particular company can last from two days to a week.
If, based on the results of the assessment, it becomes clear that an employee does not have growth potential (due to age, personality or some other characteristics), then, according to Yuri Gorkovenko, it is better to part with such a person. If the assessment shows that the employee is capable of developing, the costs of his studies and possible coaching should be calculated. Here we need to take into account the budget for training a specific employee, the mentor’s salary and the profit lost for the company due to the fact that this coach was distracted from his direct responsibilities (for example, a sales manager taught a sales representative, while he was supposed to look for new clients and make deals agreements with them). The last factor is quite difficult to calculate. Theoretically, lost profits are determined by the cost of possible transactions, projects, etc. But in practice it is usually difficult to imagine “what would have happened if”.
When calculating the costs of newcomers, you should take into account, firstly, the cost of fees recruitment agency or an internal recruiter. When searching for sales representatives, according to Yuri Gorkovenko, the fee for one employee will be from $1,000 to $2,000. The selection of managers will cost a company from $3,000 and above (sometimes $20 thousand) - depending on the industry and the value of the personnel. An internal recruiter costs less - here the costs consist of the costs of his compensation package and workplace. Next, you need to evaluate the resources that other employees spend when adapting and training a newcomer (taking into account lost profits). And possible losses from the fact that the hired employee does not achieve the expected results. And in his place we will have to look for the next candidate.
The employee turnover rate is an indicator of a firm's effectiveness in hiring significant employees. What is meant by staff turnover? A high employee turnover rate indicates that the company is employing low-quality workers or is unable to retain them. In fact, high staff turnover is most likely due to the employer providing: low prospects, inadequate working conditions, below-average wages, etc. The company's risks with external rotation of line employees increase significantly. The outflow of company personnel often occurs due to the termination of an employment contract or its voluntary resolution.
How to calculate employee turnover as a percentage using the Excel formula
The figure below shows the current state of staff turnover in a particular company over a period of 12 months. The number of newly hired employees is added to the number of employees at the beginning of the month and the number of personnel who quit their jobs at the company is subtracted. The total number of employees is calculated in this way:
The employee turnover rate is the ratio of the number of dismissals from work to the average monthly number of employees hired by the company. The AVERAGE function is used to calculate the average number of employees for an entire month. The number of layoffs from a company is summed up by the SUM function and divided by the average monthly number of employees.
The result of the calculations can then be compared with the average values of the indicator for the same industry of firms or firms of a similar profile. Employee turnover rates vary across industries. Therefore, the usual comparison of this indicator with previous results can lead to making wrong decisions. Premature formation of specific mechanisms for personnel rotation within the company, etc. It is not necessary to calculate employee turnover rates over a 12-month period, but it can help level out (smooth out) periodic fluctuations in layoffs that can lead to erratic results.
One of the most important indicators of the efficiency of using human resources for any HR specialist or enterprise manager is staff turnover. Understanding the reasons why staff turnover increases allows you to get rid of negative consequences its existence, and the calculation formula greatly simplifies obtaining the final information for subsequent analysis.
Staff turnover - what is it?
Personnel turnover is, first of all, a general indicator according to which employees are renewed in the organization. It reflects how often employees leave the organization and how often management has to bring in new employees to replace them. At the same time, it is necessary to understand that staff turnover is not always a negative factor - only its immediate meaning can indicate the presence of certain personnel or organizational problems.
In the Russian business sphere and the HR management industry, employee turnover is often referred to simply as “turnover,” while Western economists and HR specialists also call it the “revolving door index,” which reflects the nature of this indicator - how often employees are replaced by new ones.
IN in simple form, staff turnover is calculated as the ratio of the number of people who left during billing period employees to overall size staff of the enterprise. However, when calculating this indicator, analyzing it and studying possible personnel decisions for use in the immediate organizational and management process, much deeper principles relating to the problem under consideration should be used. In particular, the employer should definitely pay attention to:
- Direct indicator of turnover. In any case, studying the overall rate of staff turnover at an enterprise is necessary for every employer to obtain an overall picture of the use of the organization’s human resources.
- Character of fluidity. In some areas of activity, turnover may not be caused directly by any shortcomings of an organizational nature or personnel decisions, but may be a feature of the industry as a whole.
- Types of turnover. An effective calculation of staff turnover should involve an analysis of each type of turnover, since the elimination of certain causes depends primarily on the category of turnover.
- The consequences of turnover for an organization. Certain work arrangements and industries may suffer from high turnover more than others. At the same time, there are areas of activity or individual enterprises for which even high turnover rates are the norm, since it is on them that the personnel and economic policy of the enterprise is based.
Types of staff turnover and their impact on the organization
As mentioned earlier, a personnel specialist or a person responsible for the personnel policy of an enterprise needs to know what types of staff turnover exist. It should be understood that staff turnover can be divided according to its types different criteria. So, from the point of view of the direct size of the turnover indicator, its types can differ in:
- Natural. In most cases, the indicator of natural staff turnover reflects the normal situation at the enterprise, which does not require making appropriate decisions, since this situation is standard and demonstrates the absence of serious problems in this area of personnel management. For most types of activities, turnover rates of 3-5% are considered natural, but in practice rates of up to 10-15% are considered normal.
- High. High turnover includes indicators of personnel renewal of the enterprise at a level higher than the previously stated 15%, however, it begins to have a negative impact precisely when it exceeds 5%, mentioned as the ideal standard for natural turnover. The presence of such a high turnover has negative impact for most processes, since the labor efficiency of an experienced employee is an order of magnitude higher than that of most new specialists. It is also necessary to understand that the consequences of high staff turnover can have different effects on the enterprise depending on other aspects of this indicator.
- Decreased. Despite the fact that the main problem that employers are trying to cope with is high staff turnover, its reduced rate also demonstrates the presence of certain negative processes and management features. Thus, low or zero indicators are evidence of stagnation and the fact that even ineffective personnel are not removed from the enterprise, but continue to use its resources.
From the point of view of the causes of staff turnover, it can be divided depending on the sources of initiative. So, fluidity can be:
It is necessary for HR specialists to keep records of the reasons for staff turnover not according to the formal status of dismissal, but according to its real reasons, since dismissal of one’s own free will can very often be initiated by the employer. And the employee uses this wording to get rid of the negative consequences of termination. employment contract, expressed in the form of a “bad” entry in the work book.
In addition, personnel services often take into account the division of staff turnover by location. So, in this aspect it can be divided into:
- External staff turnover. This is a standard indicator that reflects the level of employee departure from the organization as a whole and is considered a major problem.
- Internal staff turnover. This indicator relates to the movement and rotation of employees directly within the enterprise and primarily affects the number of transfers of employees from one division to another or changes in positions at the enterprise.
In addition to the above types of turnover, progressive personnel techniques also take into account an additional indicator - potential or hidden staff turnover. It may reflect the number of employees who do not actually quit and continue to work, but are already ready to leave the enterprise and are not interested in its development - both due to professional burnout and due to the influence of other factors. Often, such workers are kept in the workplace only by the lack of a convenient alternative - and they will leave the enterprise as soon as one appears.
It is also necessary, in most cases, to separate when calculating the turnover rates for employees who have completed a probationary period and have been working for more than a year, and employees who quit before one year of work. In the first situation, there is a standard turnover of personnel, directly caused by various direct reasons that push employees to quit, while the turnover of young specialists is ensured mainly by the ineffectiveness of the selection of employees and the adaptation mechanisms of new employees at the enterprise.
Reasons for staff turnover
To eliminate the resulting staff turnover, it is necessary to accurately understand the cause of these circumstances. Moreover, in most situations, according to statistics, turnover is ensured only by a number of reasons common to all business entities, which include:
- Lack of professionalism in employee selection. Most often, the potential risks of dismissal of an employee can be determined at the stage of direct hiring and consideration of the applicant’s candidacy. However, the personnel service often does not pay due attention to these aspects of employment, paying attention only to the need to quickly select a specialist who meets the formal requirements.
- Ineffectiveness of adaptation. If for long-term employees the turnover rates remain at normal level, and mainly new workers change their place of work, this primarily indicates the poor quality of adaptation of workers, which requires appropriate organizational and personnel decisions. The reasons for poor adaptation can be both the lack of adaptation programs and the toxic microclimate in the work team, sometimes reaching the point of actual “hazing” of old workers in relation to new ones.
- Lack of a clear development structure. If an employee’s profession and position have a strict, insurmountable ceiling on remuneration and career growth, this fact will definitely affect the increase in staff turnover, since few people see themselves in the same workplace for a long period. In many situations, it is almost impossible to eliminate this cause, however, certain methods of leveling it negative influence are still present.
- Ineffective labor organization. Excessively strict or excessively soft personnel policies and management mechanisms at an enterprise can seriously affect the level of staff turnover, as well as motivational policies in relation to personnel. Too loyal an attitude towards employees can reduce turnover to a minimum level while actually reducing the effectiveness of their work, while strict control can lead to loss of motivation, professional disorders and dismissals.
- Inconsistency of personnel policy with market requirements. Excessively low wages compared to the market average, higher workload for employees, lack of social guarantees provided by competitors and similar organizations. All of these are direct reasons for staff turnover.
Factors influencing the risk of staff turnover
It is necessary to understand that, despite the presence of very precisely defined main reasons for staff turnover, there are also a number of certain indirect factors influencing its occurrence and development. These turnover factors include:
Formula for calculating staff turnover
The basic formula for calculating staff turnover is quite simple and may look like this:
CHU/RSH*100 = CT
CN – number of employees who left, RS – estimated number of staff, CT – staff turnover rate as a percentage.
IN in this case, the total staff turnover at the enterprise is calculated without taking into account the dismissal initiative and other factors. An extended formula for calculating the employee turnover rate may look like this:
(CHU-CHN)/RSh*100 = CT
In this case, a new indicator is introduced - CN - the number of employees who left not on their own initiative.
However, to analyze staff turnover and make appropriate integrated solutions within the framework of personnel management, other indicators directly related to it are also used. Each of them, together with the formula, should be considered in more detail:
Stability factor. It demonstrates the quality of the employee adaptation period and the effectiveness of this process. The frame stability coefficient is calculated as follows:
100/RSh*RP = KS
Where KS is the stability coefficient, RS is the estimated number of staff, and RP is the number of employees who have worked for a certain period, taken as a basis. 100/2000*1800
Intensity factor. It shows the intensity of staff turnover in individual structural divisions and is calculated as follows:
KTO/KTP = CI
Where CI is the intensity coefficient, KTO is the department turnover rate, and KTP is the enterprise turnover rate. When CI exceeds one in a given department, certain measures must be taken to eliminate staff turnover.
Turnover ratio. This indicator demonstrates the change in the number of employees and the effectiveness of personnel policy in general, but has no value in itself, but can be useful in a comprehensive analysis. It is calculated as follows:
CH/CH = KO
Where KO is the turnover ratio, CN is the number of dismissed workers, and PE is the number of hired workers.
Potential turnover rate. This coefficient allows us to assess the effectiveness of employee motivation and the ongoing personnel policy by surveying employees. The presence of problems at the enterprise will be determined if this coefficient will be higher general indicators enterprise turnover. It is calculated this way:
100/CHA*CHU= CPT
Where KPT is the potential turnover rate, NA is the number of surveyed employees in general, CN is the number of surveyed employees who expressed the desire or possibility of dismissal within one calendar year.
The ancient Greek philosopher Heraclitus said that “everything flows, everything changes.” Changes also affect the personnel composition of any company. Very often you can notice the following trend: the same organization periodically publishes the same vacancy on employment services. What is this connected with? As a rule, the reason for this is staff turnover. Any competent manager realizes that “turnover” has a negative impact on running a business, because a well-coordinated team usually works like clockwork, in which every cog is important and needed. Let's discuss how to calculate the staff turnover rate, the main reasons for this phenomenon and ways to combat it.
What is staff turnover?
The adjective “fluid” is most often used in relation to liquid substances and denotes instability in the state of something. If we talk about company personnel, the concept of turnover implies a change in the status of an employee in a kind of “employed or fired” fork. Moreover, important indicators for determining staff turnover will be both the frequency of changes in status and the time during which a person was an employee of a particular enterprise.
In personnel management, employee turnover is a kind of norm that demonstrates how often an employee gets a job and loses it. In other words, it shows how long a person has been a working member of the company. Employee turnover is also commonly referred to as the “revolving door index” because it illustrates the frequency of layoffs for a particular organization.
If the employee turnover rate exceeds generally accepted standards, then the situation in the company is considered unstable and unfavorable. A completely logical question arises: why, for example, do highly qualified workers quit? The loss of professional staff cannot but harm the business, because they are replaced by new employees who need both training and the time needed to “join” the team and work well with it.
Types of staff turnover
Analysis of staff turnover allows us to identify five main types:
- Physical – covers employees who quit and leave the company for various reasons.
- Hidden (or psychological) - observed when a person officially continues to be on the staff, but in fact takes absolutely no part in the activities of the organization.
- Intra-organizational – occurs when personnel moves directly within the company.
- External - labor resources move from one organization to another, and a change in both industry and economic sphere is possible.
- Natural – associated with timely and necessary updates in the team, is a normal and natural process, and therefore does not require special measures to be taken by management.
Important: natural “turnover”, according to experts, is 3-5% per year and is a kind of catalyst fresh ideas and trends in the company’s activities, since new employees often have the opportunity to look at the state of affairs differently. But with frequent changes in management, staff turnover is unlikely to have a positive impact on performance.
If we take into account the reason why a person leaves a particular company, then staff turnover occurs:
- Active - the employee independently decides to leave because he is not satisfied with any external factors(for example size wages, working conditions, attitude of management, personnel policy, atmosphere, etc.).
- Passive - the organization's management is not satisfied with personal or professional qualities employee.
Reasons for staff turnover
Probably, any manager is wondering: why in some companies people work for years in a well-coordinated team, while in others the HR department does not have time to open cases for new employees and see off old ones? The reasons for staff turnover, as a rule, are very diverse, but it is possible to identify patterns and formulate the most common reasons for which people change jobs:
- Material reasons - low wages, instability, unfair wage system, etc. lead to people wanting to find a new job that suits them financially.
- Lack of prospects for career growth - any employee with ambitions sooner or later thinks about how to climb the ladder. career ladder. People tend to strive for development and professional growth, so the lack of prospects in terms of salary increases or promotions provokes layoffs.
- An unfavorable environment for the adaptation of new employees - unless the newly hired employee is given due attention, is not helped to “fit in” with the team, is not explained the essence of his duties, is not interested in him, then the likelihood is that the person will want to quit without waiting for the end probationary period, very large.
- Poor working conditions - people spend a lot of time at work, so management should strive to provide employees with everything they need for professional activities and personal comfort. Old technology, cold room, lack of breaks and conditions for rest, etc. will not contribute to the working impulse.
- Attitude towards management - personal dislikes, dissatisfaction with the management methods of management often influence the fact that employees decide to leave the company.
- Failures in the personnel selection process - it is not always possible to find a valuable employee: there are cases when the manager makes a mistake and hires the wrong person, which most often ends in dismissal because the employee cannot cope with his duties.
- Incompetence of an employee - usually all organizations try to get rid of people who do not complete their work on time or cannot interact with the team.
- Emotional impulses - the “herd instinct” also manifests itself in the professional sphere: often others follow one employee. Why? For example, because of friendships or family ties.
You can also highlight some factors that contribute to staff turnover:
- Skills – Typically, low-skilled workers are more likely to move from one organization to another.
- Age - young people love change, so, according to statistics, people under 25 do not stay long in one company.
- Remoteness of place of residence – if an employee has to travel a long time to work, the risk of his dismissal increases.
- Work experience - people who have worked in the same company for more than 3 years are less likely to want to change something, since both age and possible problems in adaptation to a new place.
Staff turnover rate - calculation formula
It is most convenient to calculate staff turnover as a percentage. It's quite simple, you just need to know some parameters that are known to any manager from the reports provided by the HR department. The formula for calculating the staff turnover rate is as follows:
Ktk = (Chszh + Chrr) * 100 / Chsp, Where
- Ktk – staff turnover rate (in%);
- Chszh – the number of people who left the company of their own free will;
- Chrr - the number of people dismissed in accordance with the decision of management (due to absenteeism, violations of discipline, criminal records, etc.);
- Chsp – the average number of employees for a certain period.
The average number of employees is an independent indicator, so first you need to calculate it. To do this, you need to note the number of employees in the company on a monthly basis. As a rule, data is updated on the first day of a new month. Next, you need to decide for what period you need to find out the average number of employees? Then the numbers for each month are summed up and divided by the number of months of interest.
Example: Cafe "Lira" needs to calculate the staff turnover rate for one year. In January, the cafe employed 21 people. In March, one waiter quit, and in April, two new waiters were hired. The cook left in June, and another was hired to take his place in July. In August, due to expansion, they hired another kitchen worker. In November, one waiter was fired for systematic absenteeism. In December, we had to hire two more waiters, as the flow of visitors increased before the holidays. Thus, during the year, two people resigned of their own free will, and one was dismissed by decision of the manager, six employees were hired.
First, let's calculate the average number of employees for 12 months. Data on the number of employees is presented in the table at the beginning of each month:
Result: average headcount for 12 months: Chsp = (21 + 21 + 20 + 22 + 22 + 21 + 22 + 23 + 23 + 23 + 22 + 24) / 12 = 22. Then the staff turnover rate for one year: Ktk = (2 + 1) * 100 / 22 = 13.64%. For a cafe, this ratio is normal, which means that the personnel policy is effective.
Normal employee turnover rate
There is no absolute norm for all organizations, since the approximate limits within which the turnover rate is called normal depend on the field of activity of the organization. Natural staff turnover is 3-5%. If the ratio is below 3%, then most likely the company is experiencing personnel stagnation. A figure exceeding 50% indicates the presence of serious problems.
Staff turnover standards different levels are presented in the table:
The rate of staff turnover also depends on the direction of the company. For example, according to today's statistical research, in organizations working in the field information technology, the turnover rate should ideally not exceed 10%. Manufacturing enterprises should aim for 10-15%, retail trade- by 20-30%.
Important: The average number of staff and the turnover rate are indicators that, for a more accurate analysis, must be considered in dynamics, that is, over several years. If the ratio increases, we can conclude that there is instability in the company and that the personnel management policy is not effective enough. A decrease in the staff turnover rate shows that the situation is normalizing, employees are satisfied with their work, therefore, management is behaving competently.
Measures to reduce staff turnover
No manager wants to lose good employees, so usually each company has its own ways to reduce turnover. If you want to save your footage, you should pay attention to the following points:
- Fair wages – you should periodically monitor what wages your employees can expect in other organizations. If necessary, it is important to increase rates in a timely manner.
- Creation comfortable conditions labor – flexible schedule, good technical support, ergonomic furniture, breaks, own dining room, rest room, etc. Employees should be happy to come to their work in the morning workplace, and for this it must be well equipped.
- Introduction of an incentive system - it is better to use a set of measures: material incentives in the form of bonuses and gifts before the holidays (as well as for excellent work) and non-material incentives - choosing an employee of the week with placing his photo on the honor board, presenting diplomas, certificates, etc.
- Carrying out collective events - holidays, trainings, courses, thematic and sports games, fairs. Anything aimed at uniting employees will do.
- The opportunity to get a promotion - career growth is important for everyone, so people should see that high positions are given not to those close to the manager, but to those who deserve them professionally.
- Responsiveness of management - management who is attentive to the problems of their employees is always appreciated. It is logical that work is most important, but anyone may have an urgent need to leave early or take time off.
Important: It’s not so difficult to find out what the team needs and what it expects - just conduct an anonymous survey, inviting employees to fill out a questionnaire. After analyzing the results of the survey, you can develop a set of measures to reduce staff turnover in a particular company.
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The staff turnover rate shows as a percentage how many employees left the organization of their own free will or were dismissed (due to a management decision) in relation to average number workers. The calculation is made for a specific period. Based on the data obtained, the manager can draw a conclusion about the effectiveness of personnel management. If the value of the coefficient signals serious problems in the company, then you should think about how to retain and interest your employees. However, it is important to understand that the complete absence of “turnover” is not a positive thing, as it indicates personnel “stagnation”.
For a certain period by the average number of employees for the same period of time. Personnel turnover is expressed in , so the result of the division should be multiplied by 100. Personnel turnover is calculated for the planned (Tkp) and average (Tks) periods using the formulas:
Tkp = number of dismissals in the planning period / average number of employees in the planning period.
Tks = average annual number of laid-offs * 100 / average annual number of employees.
A coefficient value of 3-5% is considered natural turnover. It is mainly due to the fact that some of the employees left or due to a change of place of residence. This indicator contributes to natural and timely recruitment; it should not cause concern to the management of the enterprise and its personnel service. Indicators above 5% can cause significant economic losses and create personnel, technological, organizational and even psychological difficulties.
When analyzing the personnel policy of an enterprise, in addition to the staff turnover rate, they use such additional parameters as the stability coefficient (Kst) and the retention coefficient (Kz).
The stability (constancy) coefficient is calculated using the formula: Kst = Chss / Chsht, where:
HR – average,
Chsht – number of employees by staffing table.
The fixation coefficient is calculated by the formula: Kz = Pv2 / Chss, where:
Рв2 – the number of resigned employees whose working experience at this enterprise was less than 2 years. Typically, it is in this category of workers that the highest staff turnover is observed.
Sources:
- how to calculate turnover rate
- Employee turnover rate
Fluidity personnel, that is, unstable personnel composition, negatively affects the work of any enterprise. This is an indicator that part of the staff working there is constantly in the process of training; the team has not been fully formed. Lack of stability in the team is always a factor that reduces production performance and work efficiency. How to calculate staff turnover so that when its critical value increases, implement staff retention programs?
Instructions
Fluidity HR – a process caused by workers’ dissatisfaction with their workplace – working conditions, wages, the policy of the enterprise management. It can be intra-organizational - associated with the movement of employees within the organization and external, when the movement of labor resources occurs by enterprises, industries and sectors of the economy.
To calculate staff turnover for the planning period (TCP) and average (TKS), we use the formulas:
TCH = number of dismissed in the planning period / average number of employees in the planning period;
TKS = average annual number of dismissals * 100 / average annual number of employees of the enterprise.
The staff turnover rate (STC) is calculated as the ratio of the total number of layoffs not caused by production or national needs to the average payroll for a certain period.
There is a distinction between natural and excessive staff turnover. Natural turnover associated with the exit of employees or their relocation to, usually no more than 3-5%. It contributes to the timely renewal of the workforce and should not cause much concern.
