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Calculating Turnover
Life in Workforce Management
Calculating Turnover
Share your stories of workforce-management success in contributing to your business' bottom line, as well as your tales of business bloopers and blunders.
I have seen so many different ways and theories about calculating turnover that I'm about exhausted, but I wanted to get at least an idea from some professionals about how you do your calculations. Fu
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Forums » Topic Forums » Life in Workforce Management » Calculating Turnover
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Calculating Turnover
posted at 8/29/2006 2:57 AM EDT
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Posts: 1
First: 8/29/2006 Last: 8/29/2006 |
As has been stated by several people in the forum, there are many ways in which turnover can be calculated. The number is not as important as the reason. I know several people have provided different formulas and I will provide another. I have a calculator on my website at http://www.pipability.com/. |
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Calculating Turnover
posted at 8/29/2006 4:31 AM EDT
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Posts: 4
First: 8/30/2005 Last: 8/29/2006 |
A previous note suggested that we keep our data simple - and correspondingly easy to understand - and that is crucial. Board members may be intelligent, but they often aren't versed in the subtleties of HR. Keeping the information presented clear and simple is a help to them. The next issue is to use a consistent measure over time. Data, by themselves, need to be interpreted, and it is often the change in a number rather than the absolute value that is critical. As we all know, some occupations and age groups have higher turnover rates than others so cross-sectional analyses can be misleading. Longitudinal analyses, on the other hand, may provide insights about where management and board efforts should focus. |
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Calculating Turnover
posted at 8/29/2006 6:20 AM EDT
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Posts: 2
First: 10/4/2005 Last: 8/29/2006 |
I think executives and your board will be most interested in turnover of high performers, low performers, high potentials, new hires, minorities and females if you have AA obligations, and turnover within your most important positions - those most key to strategy. Cost of Vacancies and Value of New Hires are also important metrics. The accompanying analysis is most critical. |
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Calculating Turnover
posted at 8/29/2006 7:23 AM EDT
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Posts: 2
First: 6/1/2006 Last: 8/29/2006 |
Turnover itself can drive those in board rooms insane with speculation. I have found that you should either attempt to reframe measurements in terms of retention, instead of turnover. You know the glass is always half full. Often turnover can be reflective of multiple hires and resignations in a few positions. For example, knowing that 85% of an experienced workforce has been retained is much more valuable to planners than speculating about a turnover rate of 50%, which may only be affecting 15% of the positions. At a minimum, provide both turnover and retention to illustrate the full picture. |
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Calculating Turnover
posted at 8/29/2006 6:35 PM EDT
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Posts: 1
First: 8/29/2006 Last: 8/29/2006 |
While engaged with calculating employee turnover for a Company are we forgetting that an equally important calculation may be the impact of that turnover? Would it be nice to have some reseach results to know how seriously different types of companies are impacted by the turnover in different class and vintage of employees? A one-size-fits-all approcah always has its limitations which need to be stated up front. |
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Calculating Turnover
posted at 8/31/2006 3:22 AM EDT
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Posts: 22
First: 8/3/2004 Last: 10/10/2008 |
A while back, say around 1976, turnover was not important unless you had to prepare an affirmative action plan. Now, the turnover numbers are very important. Just like in the 70's, today, the most important turnover variable is not a number, it's the reason an employee leaves. Hope that's not an insult to the numbers calculation experts.
You need to run the numbers so you'll know who's leaving, but the why's will only come from obtaining anecdotal information gathered from a survey or exit interview. Compiling and interpreting the information (data)collected from these tools gives you much more insight. So, I would suggest what others have suggested, but not as numbers driven. If you can get to the truth in an exit interview or survey, you'll have REAL data about your company and about why employees are leaving. Along with the numbers, give the board a number(pun intended)of reasons calculated from 'true stories.' LAS |
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Calculating Turnover
posted at 8/31/2006 6:57 AM EDT
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Posts: 120
First: 8/23/2006 Last: 9/29/2006 |
Turnover could even be good.
How you calculate turnover, more importantly how you dis aggregate your turnover calculation depends upon the organization. the reason for the turnover is a nice added touch that only has value if you do something with that knowledge. Of course you could also be experiencing good turnover. Some organizations stagnate from low turnover or no turnover. An acceptable level of turnover can be encouraged to keep "organizational freshness." then of course there is always the argument regarding turnover before vesting occurs... lastly, at some point any long term employee becomes more cost than value. |
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