Effective personnel management is one of the important components of a successful business. Frequent employee turnover has a negative impact on productivity and corporate morale. Employees of a Russian HR consulting company "HR-benchmarking - Axes Monitor" conducted research and found that the staff turnover rate (hereinafter Kt) is one of three criteria for assessing the work of the HR service and the integrity of the company. Today we will talk about the reasons for turnover and learn how to calculate staff turnover.
In economics, personnel turnover refers to the migration of labor based on the employee’s dissatisfaction with the working conditions of the company or a specific employee.
Depending on the type of personnel movement, there are:
- internal turnover - within the institution;
- external - the movement of workers between companies and industries.
Rotation by type is divided into:
- Natural - associated with retirement, layoffs upon expiration, and transfer to other positions. Does not require intervention in personnel management, promotes the influx of young specialists and the formation of a healthy team.
- Excessive - intensive personnel movement associated with job dissatisfaction. Leads to decreased productivity, economic losses and psychological discord in the team.
To identify the level and analyze turnover, the staff turnover rate is calculated, revealing the ratio of the number of quitters to .
How to calculate employee turnover
To assess the state of the team, the staff turnover rate is calculated using the formula:
Where CT- staff turnover rate, Ku- the number of dismissed workers for the actual period, Emergency- average number of employees for the actual period.
Example. In 2017, the Romashka company employed 20 people, 5 of them quit.
Kt = (5÷20) x 100% = 25%
Calculations indicate excessive turnover: a quarter of the team has changed. To track the trend, calculate CT for previous periods. In 2016, the number of laid-offs was 3 people, hence CT equal to 15%. In 2015 - 2 people, CT- 10%. We can talk about reducing turnover.
For a better analysis, a calculation is made CT in the context of departments and identify the weak point. Based on the calculations, a personnel management plan is drawn up.
Positive dynamics indicate destabilization of the workforce, ineffective personnel management and employee dissatisfaction with working conditions or pay. A decrease in CT indicates competent personnel management, an improvement in the psychological situation and an increase in labor productivity.
Reasons for staff turnover
Height CT It doesn’t happen out of nowhere; employees always have grounds for dismissal. HR specialists identified the main reasons for employee departure:
- low wages;
- unstable salary;
- irregular work schedule;
- unsatisfactory working conditions;
- conflicts with superiors;
- distance of work from place of residence;
- lack of career growth and opportunities to improve qualifications;
- ineffective recruitment methods;
- shortcomings in the development of induction activities;
- frequently changing corporate image;
- work on the principle of “getting everything out of an employee”;
- unjustified dismissals.
When assessing staff turnover, the following are distinguished:
- active - this is the departure of staff due to dissatisfaction with working conditions;
- passive - dismissal of employees who do not suit management.
HR managers must promptly identify growth trends in CT and establish the reason for employee departure. To do this, you can conduct an oral survey of those leaving or develop a special questionnaire that is filled out when leaving the company.
Standard indicators of staff turnover
CT standards depend on internal and external factors: work environment, field of activity, industry, competition. Note that the standard indicators for managers and low-skilled employees take different values; the table shows indicators for different positions. 
If we consider personnel rotation by field of activity, we can see that the standards differ significantly.
Please note: during the formation of a company, at the initial stage of business development, a high rate of labor movement is a normal phenomenon.
How to Reduce Employee Turnover Rate
The manager must be able not only to identify staff turnover, but also learn to manage it and minimize it. Depending on the reasons for staff departure, the following activities are carried out:
- Analysis of the tariff schedule in terms of the structure and amount of payment. Identify positions for which rates are under- or over-rated. If compensation depends on a bonus system or plan fulfillment, reconsider them.
- They study the reasons for the instability of earnings. If they are related to internal problems, this indicates an ineffective business strategy. If profits depend directly on employees, perhaps the reason lies in their lack of qualifications. Solution: training and retraining of personnel or recruiting new specialists.
- Study of working conditions. They conduct a survey of employees about what they are not happy with at the workplace and in the work regime: working hours, shifts, organization of the workplace, heating, lighting, air conditioning, the presence of a recreation area. Compare the conditions of the company with its competitors.
- executives. To improve the quality of the manager’s work, they conduct trainings and introduce corporate training systems.
- . Apply systems of material and. Work out job descriptions: increase the responsibility of employees, expand the scope of their activities, reduce the amount of monotonous work.
- Forming a competent team begins with a properly conducted interview. We told you how to do this in. To effectively approach personnel selection, you need up-to-date job descriptions, documents on structural units, and improved methods for assessing and selecting candidates.
- Development of activities for . In large companies, it is difficult for a new employee to integrate into the team. To minimize stress and make adaptation easier, special programs are being developed. Statistics say that in the first three months, a newly hired employee develops loyalty to the company and the team. If they don’t help him “fit in,” he will most likely leave the enterprise.
- Adequate use of personnel potential. Don't ask your team to give 200% - this quickly dulls enthusiasm and reduces productivity. By practicing the “juicer” policy, you train hardy staff, but they will not stay in your company - they will move to competitors offering loyal conditions.
Work on the image of the organization. Study the market, analyze what competitors offer, and make your offer more profitable.
Conclusion
There is always staff turnover in an enterprise. If it is within the natural norm, this indicates a correct personnel policy and effective management. Excessive turnover requires a professional approach: analyze trends by periods and departments, identify the reasons for dismissals. And remember: the best is the enemy of the good. A complete lack of staff rotation leads to stagnation and decreased productivity of the team.
Analyze the additional costs associated with voluntarily leaving employees. When an employee leaves the company of his own free will, you have to incur additional costs of time and money to fill the vacancy. As long as the position remains open, your company will not be able to operate as efficiently.
- Let's assume that an accountant who writes invoices for clients decides to quit. His position is critical to your business, as you must send correct invoices to your customers on time. If you fail to do this, you will not be able to collect payments from buyers and customers on time.
- You will need to find suitable candidates to fill the departing employee's position. To do this, you can contact the employment service or advertise on a personnel search site, for example, on hh.ru. In some cases, companies prefer to use the services of recruiting companies to find suitable employees. In any case, you will incur some time and financial costs to find worthy candidates.
- A business may need to conduct multiple interviews with applicants for an open position. This will distract existing staff from their normal duties as people will have to participate in interviews. Thus, the recruitment process will reduce the productivity of your staff.
- After hiring new employees, you will need to spend some time training them. To train a newcomer, you will need to involve someone from the company’s staff. During the training period, the new employee will not be as productive as the one who left. Other employees will need to assist him in billing to ensure that all bills are sent to clients on time.
Consider the additional costs associated with dismissing employees by management decision. Usually, when calculating turnover, the total number of quitters does not take into account workers dismissed by decision of management. However, such layoffs reduce the average number of employees, which affects the turnover rate itself. Additionally, when analyzing employee turnover, you should also consider the additional costs you incur due to laid-off employees.
- Those employees who are fired due to staff reductions have the right to count on certain payments in accordance with the Labor Code of the Russian Federation. In this case, the Labor Code provides for the payment of severance pay and the preservation of average earnings until employment (usually no more than two months). The size and timing of payments are established not only by the Labor Code of the Russian Federation, but may also depend on the collective agreement adopted at the enterprise or a specific employment contract with the employee. All these costs will become additional costs for your business.
- If a dismissed employee contacts the employment service within two weeks after dismissal and is not yet employed, payment of his average earnings can be maintained for up to three months after dismissal. In this case, your costs will become even higher.
- You may also incur additional legal costs due to litigation with dissenting employees who were fired under the article.
Try to minimize losses due to staff turnover. Look at the employee turnover rates of other businesses in your industry. If your company's staff turnover rate is higher than the industry average, you should pay more attention to your recruitment and training procedures.
- Take the time to interview employees who are leaving voluntarily. Find out the reasons why they are leaving your company. Be sure to record survey results and monitor certain trends.
- For example, at an enterprise, the number of cases of dismissal may increase due to untimely assessment of the employee’s performance and lack of promotion or increase in his salary. Use the information you gain to make positive changes to your performance appraisal system.
- Demand that management personnel treat employees with respect. Maintain written work instructions for each position. They serve as a valuable source of information, especially for newly hired employees. Explain to hired employees the frequency of certification of the quality of their work and try to follow the stated schedule.
The efficiency of the work process depends on many factors, including the correct formulation of the production task and the professionalism of the company’s employees. It is important to pay attention to the fact that the well-coordinated work of the team and its cohesion significantly increase the effectiveness of production activities. Businesses with high employee turnover are rarely successful in their chosen field, since each new employee must go through an onboarding process and learn their job responsibilities.
Frequent staff changes lead to financial losses and labor downtime. Many employees, dissatisfied with this state of affairs, either leave their workplace or stop fulfilling their work obligations. The enterprise administration must not only know how to calculate staff turnover, but also take various measures to reduce this indicator.
High staff turnover is an indicator of the employer’s incorrect personnel policy
What is staff turnover
Personnel turnover is a fairly common phenomenon, characterized by a massive change of employees. The indicator under consideration is a reflection of the frequency of dismissals within the organization. This phenomenon can be explained by the lack of satisfaction of employees for carrying out work activities or the dissatisfaction of the company administration with the effectiveness of the production process. This phenomenon has many different names. In European countries, the term “revolving door index” is used to describe employee turnover. On the territory Russian Federation The term “staff turnover rate” and its synonym “turnover” are used.
It is important to pay attention to the fact that the minimum turnover of employees is a normal indicator that every entrepreneur should strive for. Attracting new employees allows you to unlock the hidden potential of the organization and increase production efficiency. However, constant personnel changes have a negative impact on the work process.
Many of the “newbies” leave the company without even having time to study their job description. In this situation, the company administration has to hire highly qualified specialists. But the lack of “space” for self-realization and prospects for career growth can lead to the fact that qualified employees will eventually leave the company. Against the backdrop of all of the above, staff turnover within the company is only increasing, which indicates the presence of obvious problems in the ranks of the company.
In order to solve the problems associated with the ineffective work of the HR department and the low efficiency of the production process, an in-depth analysis of the current situation should be carried out. For this purpose, special formulas created to calculate the fluidity coefficient are used. This indicator allows us to identify the need for recreational activities and determine the success of actions aimed at reducing the degree of negative movement of hired employees.
Reasons for the increase in the index of revolving doors
According to experts in this field, all reasons for dismissal can be divided into two conditional categories. The first category includes factors that have a negative impact on the growth of the employee turnover rate. The second category includes those situations when the head of an enterprise is dissatisfied with the work results of a particular employee and terminates the employment agreement with him.
Personnel turnover as a phenomenon of mass change of personnel in an enterprise is an extremely important indicator of the effectiveness of enterprise management - Lack of conditions for the implementation of the labor process.
- Unfair work of the personnel department is a manifestation of haste when wanting to speed up the production process, which leads to insufficient information to the applicant for a vacancy about the working conditions.
- Lack of help in overcoming the process of adaptation of newcomers, which can cause maladaptation over a long period of time.
- The presence of conflicts within the team, which are expressed in the form of disagreement with the actions of the administration and personal hostility towards the head of the company.
- Lack of career growth and dissatisfaction with one's own job responsibilities.
- Low qualifications of the organization's employees combined with a lack of discipline, which leads to the dismissal of personnel on the initiative of the enterprise management.
It should be noted that this category of reasons for high staff turnover includes various situations associated with incorrect actions of the company’s management. The systematic dismissal of workers for subjective reasons indicates that the work of the personnel department in this enterprise is incorrectly structured.
- Termination of an employment contract at the initiative of the employee.
- Termination of employment based on agreement of the parties.
- Termination of an employment agreement at the initiative of the company management, due to non-compliance with labor obligations and inadequacy for the position held.
Types of turnover
According to the theory of personnel management, there are several types of employee turnover, which are classified based on certain criteria . The first criterion is the scale of the problem. This category includes the natural process of “turnover” and an increased index of revolving doors. In the latter case, the frequency of dismissals of company employees has a negative impact on production performance.
The next criterion is the predominance of the initiative of the negative movement of hired employees. In case of active turnover, the initiative to terminate the employment contract comes from the employees of the enterprise themselves. The main reason for mass layoffs is dissatisfaction with working conditions. Passive turnover implies initiative on the part of the employer. The most common reason for dismissal is the low qualifications of hired personnel.
Of course, some minimum level of personnel movement is absolutely normal. The third criterion is the direction of personnel movement. Internal movement, called personnel rotation, manifests itself in the form of redistribution of official powers. This may mean either promoting or demoting an employee or transferring to another division of the company. External movement of personnel is dismissal for the purpose of employment in another organization. External displacement can take the form of mass layoffs of employees. In addition, there is a hidden form of external expression, which manifests itself in the form of a lack of satisfaction among employees with working conditions and readiness to leave their workplace at the first convenient moment.
It is important to pay attention to the fact that hidden staff turnover cannot be analyzed. But this indicator has a high degree of negative impact on team cohesion and the psychological microclimate within the company.
As practice shows, classifying staff turnover into various criteria helps to analyze in detail the problems that exist within the enterprise. Calculating the revolving door index allows you to identify the exact reasons for the mass dismissal of employees and determine the need for health-improving measures.
Basic rules for conducting analysis
The analysis of negative circumstances leading to mass layoffs of employees must be carried out with increased responsibility. Such events allow us to reveal the real picture of the personnel policy of the company’s administration. This means that it is unacceptable to reduce this procedure to dry calculation of percentages.
Calculation of the staff turnover rate should be carried out taking into account the scope of the company’s activities. Otherwise, the results obtained will not reflect the real picture. Compiling such calculations can be compared to analyzing the general temperature of bodies within an entire hospital. Agree, the results of these calculations are uninformative and do not contain useful information. That is why, during the analysis, it is necessary to take into account each department in the company. Often, negative movements of hired employees are associated precisely with the specificity of the labor obligations of specific officials.
You should also take into account the real motives of employees that push them to quit. As practice shows, the resignation letter contains only dry information that does not correspond to the true state of affairs. Experts in the field of personnel management recommend preparing special statistics that will take into account all the reasons for dismissing employees.
A correctly calculated turnover rate makes it clear to the employer whether it is necessary to launch measures to reduce the level of negative personnel movement When making calculations, it is necessary to take into account the duration of work of former employees of the company. It is necessary to take into account not only employees whose work experience within the organization is less than twelve months, but also those specialists who have worked for many years . The ratio of these indicators allows us to identify various reasons that push personnel to leave the enterprise.
It is important to pay attention to the fact that when analyzing the turnover of employees of an enterprise, it is necessary to identify not only objective factors contributing to dismissal. A competent and responsible employer must conduct a detailed study of the existing shortcomings in the work of the personnel department. Most often, the reason for the low efficiency of the labor process and the subsequent dismissal of employees is their low qualifications and the complex adaptation process.
Standards established for employee turnover rate
The staff turnover rate shows the percentage of the number of employees who left the company and the average number of hired employees over a certain time period. The standard for this indicator is closely related to the field of activity of the enterprise. In addition, when making calculations, you should take into account various indicators for each of the company’s departments. It is important to note that the turnover rate among marketing employees may differ significantly from that among ordinary workers. This can be explained by the fact that employees belonging to the administration of the enterprise are much less likely to leave their workplace in comparison with low-skilled personnel.
Statistics show that the turnover rate among managers varies from 0.1 to two percent. Among representatives of the middle level of administrative staff, this norm is about ten percent. The coefficients for line employees should not exceed twenty percent. The norm for qualified personnel involved in the production process is an indicator of thirty percent. Attrition rates among low-skilled workers range from thirty to fifty percent.
It is important to pay attention to the fact that the final value may vary due to the specifics of the enterprise's activities.
Hidden, potential or psychological turnover is an indicator that cannot be calculated, but has a strong negative impact on the corporate spirit in the team The highest staff turnover is observed in the hotel and restaurant business, where the figure in question is eighty percent. For the trade sector and insurance companies, the normal value is a coefficient of thirty percent. These indicators are significantly lower in the manufacturing and high technology sectors. According to international researchers, in such organizations the revolving door index does not exceed fifteen percent.
It should be said that first of all it is necessary to analyze the dynamics of the negative movement of hired employees. An increase in the revolving door index clearly demonstrates the negative climate prevailing within the team, the low efficiency of the HR department and employee dissatisfaction with the working conditions. A decrease in this index indicates the normalization of interpersonal relationships among employees and the proper use of personnel.
Rules for making calculations
The formula for calculating the staff turnover rate is used only when a time period is selected that will be used in the calculations. This could be a specific month, quarter or year. Before you begin the calculations, you should carefully analyze the documents on the dismissal of employees and identify those factors that could affect the level of employee turnover. Next, you should prepare calculations of the average number of employees for a specific time period.
In order to determine the average number of employees for a certain period, it is necessary to obtain the number of hired employees of the organization on the first day of each month. After preparing all the necessary information, the following actions are performed:
((Ch1+ch2") /2+(Ch2+Ch3) /2+…+(Ch12+Ch1n)) /12=MF, where:
- Ch1-Ch12– the number of employees of the organization on the first day of the month.
- Х1n– number of employees as of January 1 of the reporting year.
- midrange
KU/SC*100=KT, where:
- KU– the number of employees who left the company.
- midrange– average number of employees.
- CT– staff turnover rate.
The most effective way to reduce staff turnover is to stimulate an increase in the level of work value of each employee Branch number six of the financial institution “Your Money” has been showing low labor efficiency for several years. The company administration has suggested that one of the reasons for this phenomenon is the rash decisions of the personnel department. Young specialists recruited to work in this department are dismissed within a couple of months after employment. A specialist in the personnel department of a financial institution, A.D. Vasiliev, analyzed personnel turnover in department number six for the period from October 30, two thousand and sixteen to September 31, two thousand and seventeen.
The following indicators were used in the calculations:
- The number of employees of the department in question as of November 1, two thousand and sixteen was 254 people.
- The number of employees of the department in question as of September 31, two thousand and seventeen was 251 people.
- The number of people dismissed for reasons affecting turnover is -43 people, of whom 38 left the workplace on their own initiative.
Compiling an index of revolving doors for department number six:
43/((254+251) /2) *100=16.63% (this figure is expressed only as a percentage).
After a thorough study of the personal files of the dismissed workers was carried out, the fact was revealed that the reason for the dismissal was insufficient qualifications. It was this reason that became the main factor in the low efficiency of the department’s work. A detailed analysis of the personal files of employees working in this department made it possible to obtain information that only twenty percent of employees have been working in this organization for more than five years. This information clearly demonstrates the presence of gaps in the recruitment procedure and the work of the personnel department.
Factors influencing performance
According to human resource management theory, a normal revolving door index is a ratio ranging from three to five percent. This indicator indicates a normal microclimate within the team and the absence of a negative impact of staff turnover on the production process. In this case, most dismissals are due to reasons that do not depend on each of the parties. These include urgent conscription for military service, retirement and complex illnesses.
Personnel turnover is an indicator demonstrating the frequency of employment and dismissal of an employee In practical terms, the size and location of the company should be taken into account. The specifics of work activity and seasonal demand for the products or services offered. In addition, the level of competition in this area is taken into account. One of the main factors influencing staff turnover is the predominance of one of the categories of employees (company administration, office workers or production personnel). For medium-sized enterprises, a revolving door index of twelve percent is normal. In larger companies it can reach fifteen percent.
Wellness activities
In order to gain control over staff turnover, it will be necessary to carry out health measures in order to reduce the number of dismissals. Measures to reduce staff turnover include various actions by company management aimed at eliminating the most common reasons for employee dismissal. The most effective method of solving this problem is to increase the value of the workplace in the eyes of employees.
In order to retain existing employees and increase the efficiency of their work activities, it is necessary to implement new personnel management systems in a timely manner.
Possible career growth and salary increases are the first steps to improve the health of the enterprise. At the initial stage of such events, the main goal of the employer is a complete change in personnel policy to reduce the staff turnover rate. This will require optimizing financial rewards for high performance. These may be extraordinary bonuses, bonuses or additional payments.
Further, penalties for workers who violate labor discipline should be reduced. One of the effective methods of reducing staff turnover is to expand the social package and introduce additional benefits for certain employees. In some cases, it will be necessary to revise the work and rest schedule of employees.
Particular attention should be paid to the level of training and qualifications of personnel. Training at the expense of the company, holding various seminars and trainings allows us to solve the problem of low efficiency of the production process. In addition, serious work should be done with the company administration. First of all, this concerns the personnel department, which is directly responsible for staff turnover.
The higher the staff turnover rate, the more alarming the situation in the company Conclusion
In conclusion, it should be said that managing a company is a complex activity that requires constant effort. The efficiency of the enterprise administration is determined based on the revolving door index. In order to reduce the number of layoffs, the head of the company needs to find an individual approach to each employee in order to provide the most favorable working conditions. It is these measures that will increase team cohesion, which will have a positive impact on the effectiveness of the production process.
The staff turnover rate is one of the three most common criteria for assessing the effectiveness of personnel services, along with compliance with the budget for personnel costs and requirements for maintaining personnel document flow. In this regard, the question is often raised about the algorithm for calculating the turnover rate and what HR managers should do in a situation where they have ceased to influence this indicator due to the processes of personnel reduction that have taken place in many companies.
One of the leading Internet portals dedicated to personnel management issues provides the following definition of staff turnover: “The staff turnover rate is the ratio of the number of dismissed employees of an enterprise who left during a given period for reasons of turnover (at their own request, for absenteeism, for violating safety regulations , unauthorized departure and other reasons not caused by production or national needs) to the average number for the same period.”
Those who calculate this indicator usually have a number of questions:
- What to do with layoffs related to national and industrial needs: retirement, transfer to another place of work?
- What to do with layoffs due to staff reductions?
- What to do with situations when an employee was separated de jure at his own request, but de facto for completely different reasons: be it a violation of labor discipline or a reduction in his position?
In our opinion, the following formula is more correct:
Personnel turnover = number of people who left the company for a certain period / average headcount for the same period × 100.
For example, if 20 people left the company during the quarter when the average headcount for that quarter was 200 people, then the staff turnover rate in the company for the quarter was 10%.
But by calculating this figure as the “hospital average,” we do not receive information for analysis. The questions remain unanswered: “Why did these people leave the company?”, “What departments did they work in?”, “How long did they work in the company?”, “How significant are the losses for the company that their departure will lead to?”
Thus, the task of the personnel manager is to identify the reason for the dismissal of each employee and maintain statistics on these reasons. In addition, it is also necessary to keep statistics on layoffs: their number per month, per quarter, per year; distribution of dismissals by department, position, and length of service of dismissed employees.
Calculation of turnover rate by department
If in one of the divisions the turnover rate is significantly higher than the company average, you should find out the reasons for this situation. And they can be different: from the management style in the department to the working conditions of employees.
In this case, it is important to draw the manager’s attention to the current situation and, if possible, include the turnover rate as a target KPI (key performance indicator) in the bonus structure of this manager.
The head of one of the warehouse terminals, in a conversation with the HR manager of the central office, explains the high turnover rate among storekeepers by their low salaries.
Before revising salaries, the HR manager decided to analyze whether the turnover rate at this warehouse differed from the company average. It turned out that it differs significantly, which means that the issue is not at all about the wages that are standard for all the company’s warehouse terminals. Probably, the real reason was that the boss himself, when hiring new employees, did not make a choice in favor of the best candidates, which could be a consequence of the boss’s lack of interviewing skills.
Calculation of turnover rate based on length of service in the company
This period depends, first of all, on the average duration of work in the company and can be:
- six months - for companies with a high turnover of personnel, for example, for logistics terminals or large supermarkets;
- year - for most companies;
- three years - for companies such as a design bureau, which attracts graduates of specialized universities, additionally training them for another year or two.
The percentage of employees who left the company during the first year of work can be considered an indicator of the effectiveness of the selection and adaptation systems.
The staff turnover rate serves as an indicator of the health of the company and the correctness of management decisions made in the organization. It is important to correctly diagnose the causes of this symptom.
The HR manager for a retail chain of stores noticed that since the beginning of the year, the turnover rate among newbie salespeople has increased. This trend was surprising in the context of the economic crisis, when the average turnover rate for the company decreased significantly, because people began to “hold on” to their jobs. Moreover, there have been no recent changes in the process of hiring and onboarding employees.
After analyzing the situation, the HR manager suggested that the reason was changes in the employee bonus system initiated in January. As a result, salespeople who had been working in stores for a long time, wanting to get the maximum part of the bonus fund, were not interested in expanding their staff and, as a result, “survived” new employees by working for them and receiving a larger bonus.
Thus, the turnover rate among newcomers in this situation signaled that the bonus system was reorganized incorrectly and requires improvements.
Calculation of turnover rate based on reasons for dismissal
Personnel turnover can be divided into active and passive.
Active staff turnover is a movement of labor caused by employee dissatisfaction with the workplace: working conditions, living conditions, etc.
Passive staff turnover is a movement of labor caused by the employer's dissatisfaction with a particular employee.
When analyzing these indicators, it is important to record the real reasons why the employee left the company. Surely every HR manager has encountered a situation where, although an employee wrote a statement of his own free will, the real reason for the separation was something else: a disciplinary violation or inconsistency with the position.
The company's HR manager usually does not have the opportunity to talk personally with employees resigning from remote offices, so once a month, after all settlements have been made with those dismissed, they should selectively call former employees to understand whether the reasons indicated by managers are true and whether it is hidden under the phrase “ moving to another city” parting with the company due to dissatisfaction or disappointed expectations.
Example questions for fired employees:
- When you first started working, who explained your responsibilities to you and introduced you to the rules and features of the activity?
- Have you read the New Employee Folder? Were you given printed materials? Was everything clear to you?
- Did they help you in your work if something didn’t work out? Who? (Manager, colleagues, a little of everything, no one.)
- Have you ever had problems in your team? With whom? (With the manager, with colleagues.) How were the problems solved?
- How can you generally describe the atmosphere in the team?
- What are the reasons for your dismissal?
- Could you recommend your friends to work in this department? And in general in our company?
Thus, for accounting carried out by the personnel service, it is necessary to record the real reasons for dismissal and the initiator of separation. For example, this could be the indicator: “The percentage of employees who worked for less than a year and were dismissed at the initiative of the company in workshop No. 7.”
In conclusion, let us note that there are significant fluctuations in the “staff turnover” indicator among companies in various business sectors. The highest staff turnover is observed in the retail sector.
The turnover rate among top managers and executives is lower than among specialists and such special categories of workers as salespeople, cashiers, and workers. This is explained by the fact that as the position increases, the opportunities for career, financial and status growth within the company increase. As a result, such employees are more attached to their company.
|
You need to know this Errors during selection
Adaptation errors |
The team is the basis of any institution. Competent selection of personnel for the institution ensures its stable and effective operation.
Personnel decides everything!
In the modern world, staff turnover is a fairly important task that modern teams face. This article will provide a study of this problem and show what is meant by staff turnover.
Definition
Personnel turnover refers to a value that reflects the frequency of hiring and dismissal of personnel. That is, how long the employee works in the institution.
Today, any institution takes special responsibility for managing its teams. High-quality recruitment provides the company with qualified employees with optimal use of them.
Therefore, such an indicator as the staff turnover rate reflects the stability of the functioning of the institution.
The higher this indicator, the more alarming the situation in the institution. This situation is explained by the frequent departure of highly qualified workers and the emergence of a huge number of new personnel in the team. The created situation disrupts the stable functioning of the institution, since it is necessary to spend both time and cash.
Among the important reasons for the high turnover rate today is the low degree of social protection of workers.
To date, approximate boundaries have been determined within which the fluidity value is considered optimal.
- If the turnover rate is less than 3%, this indicates stagnation in the institution.
- If the turnover rate is 5-9%, the team is working relatively stably.
- An indicator figure of over 50% indicates growing problems in the company.
A more precise determination of turnover limits depends on specific indicators.
Employees at different levels may have different indicators:
- So, for VIP managers the value is – (0-2)%
- For middle managers – up to 10%
- For ordinary workers – up to 30%
- For low-skilled personnel – up to 50%.
Limits may also be different in different sectors of the national economy:
- In IT technologies – 8-10%;
- In the manufacturing sector – 12-15%;
- In the trade sector - up to 30%, etc.
High staff turnover indicates that team members are not satisfied with the situation in the institution. This may be dissatisfaction with the level of salary, working conditions, workplace, or dissatisfaction with the institution by the employee.
There are two main types of staff turnover:
- Physical (or external) is when staff leave a particular institution or move to another institution.
- Hidden (or psychological) - here employees change jobs or positions within the institution without resigning, either at their own request or on the initiative of their superiors.
By parameters, the turnover rate is divided into:
- Absolute, which displays the ratio of the number of all departed employees to the total number of employees of the institution for a specified period.
- Relative is a more accurate coefficient that calculates turnover by structural departments, with a breakdown of indicators by age, gender, length of service, reasons for leaving and other parameters.
In relation to the reason for leaving, the turnover value is divided into:
- Active - the employee quits because he is not satisfied with some internal factors: salary, attitude, working conditions, etc.
- Passive - the employee is not liked by the management of the institution due to labor or personal parameters.
Turnover value by structural departments
If personnel leave a certain department more often than others, it is necessary to check the personnel selection policy and the attitude of managers towards employees, as well as analyze other reasons.
The value of turnover by length of service
Analyzing the time staff worked before dismissal, the following conclusions can be drawn:
- Dismissal after six months of work reflects the weak effectiveness of personnel policy
- Dismissal after the first year of employment reflects the current links of personnel adaptation
- Dismissal after three years indicates a system of established staff relations and the stability of the institution itself.
Turnover value with reasons for leaving
By analyzing the reasons for an employee’s departure, you can learn a lot about the employee and the order in the institution. The entry in the work book “dismissed at his own request” or “by agreement of the parties” does not reflect the true reason for the dismissal. The real reason may be completely different.
In order to correct the situation in an institution or department, management needs to find out the actual factors that influenced turnover, and not hide behind standard formulations. Only a detailed factual analysis will make it possible to influence the situation in the institution.
The dismissal of an employee does not always reflect the level of turnover. When the turnover value is calculated, only reasons for leaving are taken into account that do not depend on production or government needs.
These include:
- Dismissal at the request of an employee
- Dismissal for absenteeism
- Dismissal for leaving the workplace without permission
- Dismissal for violation of labor discipline or safety
- Dismissal for failure to pass certification
- Transfer to another job, etc.
Reasons for dismissal that are not taken into account when determining the turnover rate may be:
- Reduction in the number of employees
- Reduction of staff in the institution
- Reorganization of the institution
- Personnel changes due to changes in leadership
- Retirement of an employee.
The formula for calculating the turnover rate looks like this:
K tech– turnover rate
To ear– Number of employees who left
H Wed– the average number of employees in the institution.
All data for calculation is taken for the reporting period, for example, for a year.
The average number of employees for the year is determined by the formula:
H av = ((H1+H2) /2 + (H2+H3) /2 + … + (H12+H1n)) /12
H Wed– average composition of employees
Ch1, Ch2 etc. – number of employees on the first day of the month
Х1n– number of employees as of January 1 of the year following the reporting year.
Normal staff turnover rate
The rate of turnover largely depends on the circumstances in which the institution operates and on the industry in which it operates. For a more in-depth analysis, you need to calculate the value for each structural department of the institution. For example, turnover rates among top managers do not coincide with those of low-skilled workers. “Managers” change jobs less often than ordinary staff of the institution.
The normal turnover rate for VIP employees is in the range (0-2)%. For middle managers, the norm increases to (8-10)%. For line employees – no more than 20%. The rate for skilled production and sales workers is (20-30)%, and for low-skilled workers – up to (30-50)%.
The indicator varies depending on the industry where the institution operates. For example, international surveys have shown that in the IT industry, the normal staff turnover rate is (8-10)%, in the manufacturing sector - (10-15)%, in the field of insurance and sales - up to 30%, and in the hotel sector. restaurant sector is 80%. It must be taken into account that in the first days of an institution’s operation, the turnover value is usually higher than normal.
For more complete information, the coefficient must be calculated dynamically - over several periods. An increase in the indicator indicates an incorrect personnel policy in the institution or insufficient conditions at the institution’s workplaces. A drop in the indicator indicates a positive situation in the institution and competent management in the team.
Let’s look at the staff turnover rate for 2017 using the conventional example of the “Horns and Hooves” institution, which carries out retail sales.
We accept the initial information:
in 2017, 3 employees left the institution. In reporting on the average number of personnel for the reporting period, the accounting department indicated the following information:
The average headcount as of January 1, 2018 was 12 people.
K tech = 3/12*100 = 25%
The staff turnover rate for 2017 at the Horns and Hooves institution is 25%. Since the institution’s activities are in the trading industry, the obtained value is within the normal range.
It is important to remember that staff turnover does not always demonstrate a negative outcome for the institution. Renewing personnel can bring with it modern ideas and new methods of solving problems, contributing to the improvement of the team. After all, not only valuable employees leave the institution, but also sometimes ineffective ones.
The absolute absence of turnover also has its negatives and speaks of stagnation in the institution and an unhealthy climate in the enterprise.