Normal staff turnover. What is staff turnover? Staff turnover rate. Fluidity depending on the reasons for leaving
The staff turnover rate is one of the three most common criteria for assessing the effectiveness of the activities of the personnel services, along with compliance with the budget for personnel costs and requirements for maintaining personnel records. In this regard, the question is very often raised about the algorithm for calculating the turnover rate and how to be personnel officers in a situation where they have ceased to influence this indicator due to the processes of staff reduction that have taken place in many companies.
On one of the leading Internet portals dedicated to personnel management issues, the following definition of staff turnover is given: own will, for absenteeism, for violation of safety regulations, unauthorized leaving 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 about layoffs related to national and industrial needs: retirement, transfer to another job?
- What about layoffs due to downsizing?
- What to do with situations when an employee was separated de jure at his own request, and de facto for completely different reasons: whether it was a violation of labor discipline or a reduction in his position?
In our opinion, the following formula is more correct:
Staff turnover = the number of people who left the company for a certain period / the average headcount for the same period × 100.
For example, if 20 people left the company during the quarter, with an average headcount in this quarter equal to 200 people, then the staff turnover rate in the company for the quarter was 10%.
But, having calculated this figure as the “average for the hospital”, we do not receive information for analysis. Questions remain unanswered: “Why did these people leave the company?”, “In what departments did they work?”, “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 keep statistics of these reasons. In addition, it is also necessary to keep statistics of layoffs: their number per month, per quarter, per year; distribution of layoffs by departments, positions, work experience of laid-off employees.
Calculation of the turnover rate by divisions
If in one of the departments the turnover rate is significantly higher than the average for the company, you should find out the reasons for this situation. And they can be different: starting from the management style in the unit and ending with the working conditions of employees.
In this case, it is important to draw the attention of the manager to the current situation and, if possible, include the turnover indicator as a target KPI (key performance indicator) in the structure of the bonus of this manager.
The head of one of the warehouse terminals, in a conversation with the personnel manager of the central office, explains the high percentage of turnover among warehouse workers due to their low salary.
Before reviewing salaries, the HR manager decided to analyze whether the turnover rate in this warehouse differed from the average in the company. It turned out that it differs significantly, which means that it is not at all about wages, which are standard for all warehouse terminals of the company. Probably, the true reason lay in the fact that the boss himself, when hiring new employees, made a choice not in favor of the best candidates, which could be the result of the boss's lack of interviewing skills.
Calculation of the turnover rate by the period of work in the company
This period depends, first of all, on the average duration of work in the company and can be:
- half a year - for companies with high staff turnover, 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 of a retail chain of stores noticed that since the beginning of the year, the percentage of turnover among novice sellers has increased. This trend was surprising in the context of the economic crisis, when the average turnover rate in the company dropped significantly, as people began to “hold on” to work. Moreover, there have been no recent changes in the process of hiring and adaptation of employees.
After analyzing the situation, the HR manager suggested that the reason was the changes in the bonus system for employees initiated in January. As a result, sellers 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 the staff and, as a result, “survived” new employees, 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 needs to be improved.
Calculation of the turnover rate based on the grounds for dismissal
Staff turnover can be conditionally divided into active and passive.
Active staff turnover - movement work force, due to the dissatisfaction of the employee with the workplace: working conditions, life, etc.
Passive employee turnover is the movement of the workforce caused by the dissatisfaction of the employer 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 come across a situation where an employee, although he wrote a statement of his own free will, but the real reason for the separation was different: in a disciplinary violation or inconsistency with the position.
The HR manager of the company usually does not have the opportunity to personally talk with employees leaving remote offices, therefore, once a month, after making all the settlements with the laid-off employees, you should selectively call former employees to understand whether the reasons indicated by the managers are true and whether they are hiding under the phrase " moving to another city” parting with the company due to dissatisfaction or deceived expectations.
An example of questions for laid-off employees:
- When you first started working, who explained your duties to you, introduced you to the rules and features of the activity?
- Have you read the New Employee Folder? Were you given printed materials? Did you understand everything?
- Did they help you with your work if something did not work out? Who? (Manager, colleagues, a little bit of everything, no one.)
- Did you have any problems in the team? With whom? (With the manager, with colleagues.) How were the problems solved?
- How can you characterize the atmosphere in the team as a whole?
- What are the reasons for your dismissal?
- Could you recommend a job in this department to your friends? What about in our company?
Thus, for accounting carried out by the personnel service, it is necessary to record the real grounds for dismissal and the initiator of the separation. For example, this could be an indicator: “Percentage of employees who worked less than a year and were fired at the initiative of the company in shop number 7.”
In conclusion, let's pay attention to the fact that there are significant fluctuations in terms of "staff turnover" among companies in various business sectors. The highest staff turnover is observed in the retail sector.
The percentage of turnover among top managers and managers is lower than among specialists and such special categories of employees as salespeople, cashiers, and workers. This is explained by the fact that with the growth of the position, the opportunities for career, financial and status growth within the company increase. As a result, such employees are more attached to their company.
It needs to be known Picking errors
Adaptation errors |
At any enterprise, someone is constantly leaving, and someone is getting a job, new positions are being introduced - this is a normal process for the functioning of an organization, provided that the numbers of these indicators do not go beyond the norm. How to calculate the staff turnover rate correctly, taking into account all possible changes in the number?
What is a staff turnover rate?
Staff turnover is a value that can be used to determine whether the dismissal (both at the initiative of the employee and the employer) and the hiring of new employees harm the development of the organization. Of course, it is better when time is not wasted on adaptation and training of new employees, besides, their labor productivity is much lower at first, and the number of defects in work is higher.
The employee turnover rate shows whether it is time for the employer to reconsider its internal politics in order to detain more experienced workers, because the reasons for increased turnover can be very different:
- Low wages compared to industry average.
- Unfavorable team environment.
- Bad working conditions, etc.
In order to determine the need for changes, it is necessary to calculate staff turnover.
Staff turnover rate: formula
The turnover rate is calculated as the ratio of laid-off workers to the total number, taken over the same period.
The staff turnover formula will look like this:
This value can be calculated for different periods: month, quarter, year. And also, both for the entire enterprise as a whole, and for individual departments.
When using this formula, it must be taken into account that external part-time workers are not included in the average headcount, respectively, if there are many such workers in the enterprise, they can affect the value of the coefficient. Conversely, internal part-timers are counted only once. All this must be taken into account when calculating the number of dismissed for the period.
Many businesses calculate a simplified employee turnover rate. The calculation formula in this case does not contain the average headcount, but simply the number of people who worked at the enterprise in a certain period. This calculation will not be entirely correct, since the number at the beginning of the month may differ from the similar value in the middle and end of the period. The calculation of the average headcount allows you to take into account all these nuances.
For a more accurate analysis, the resulting coefficient is usually converted into a percentage by multiplying by 100.
Staff turnover rate: standard value
The normal flow rate varies within 5% per year, with slight deviations. This figure is applicable to any enterprise, regardless of the actual number of staff.
It should also be borne in mind that its value may vary from the period for which it is calculated. So, for example, if an enterprise practices temporary hiring of new employees to replace those who went on vacation, then in the summer the coefficient may be higher. On the other hand, according to statistics, there are always fewer layoffs in the winter, as people prefer to look for a new job in the warm season.
Therefore, it is advisable to calculate not only by months, but also for the year as a whole.
Staff turnover: formula for calculating additional coefficients
In addition to the main coefficient, you can also calculate additional ones:
- The value showing the intensity of the process of hiring and dismissal in one taken unit in relation to the organization as a whole. It is calculated by dividing the turnover rate in a particular department (branch) by a similar value calculated for the company as a whole.
- The value showing the stability of the organization in terms of the state of the staff. It is determined by dividing the actual number of employees who work (worked) in the organization for a certain period by the average value for the same period of time.
In addition, various coefficients can be calculated based on surveys of employees (who is going to quit or would quit under certain circumstances), but here it will be necessary to take into account that not all employees sincerely answer these questions.
In order to determine whether a large number of layoffs affects the work of the organization, the turnover rate is calculated. The formula for this indicator includes the average headcount for the billing period. The normal ratio should vary around 5% per year.
The so-called "churn" is a problem for many employers. A rare entrepreneur is interested in the constant change of the team. The experience of subordinates and dedication to their work are much more often valued. If such a problem arose, management should take urgent action. One of the indicators reflecting the situation in the labor collective is the staff turnover rate. We will talk about this in this article.
Staff turnover
When they talk about “churn” in production, they mean frequent changes of workers due to reasons not related to production needs and changes. normative documents.
Employees leave under the following circumstances:
- not satisfied with working conditions, wages, atmosphere in the team, etc.;
- employees do not meet the requirements of management and do not cope with the tasks;
- there is no opportunity for career growth;
- the work performed is of no value to employees;
- a rigid system of financial sanctions for violations, failure to comply with labor standards;
- unfair leadership;
- inconvenient mode of operation, etc.
The organization may practice methods of abrupt renewal of the team by firing some employees and hiring new ones. This often leads to company instability.
When the management of an organization realizes that “churn” is becoming a problem and negatively affecting the activities and development of the company, it is necessary first of all to assess how critical the situation has become and determine ways to solve the problem. In order to take the first step, you need to quantify staff turnover.
Staff turnover: calculation formula
It is worth noting that there is always fluidity in the organization. Someone retires, someone leaves work due to moving to another city, someone has health problems that are not related to work, but are no longer compatible with it. In this regard, two types of fluidity can be distinguished:
- natural (up to 5% per year) - does not have a negative impact on production processes, contributes to the renewal and development of the workforce;
- excessive - entails serious consequences for the organization of an economic nature, affects the efficiency of labor activity, creates difficulties for management.
The following formula will help to assess the situation in the labor collective. In order to trace the trends of growth or decline in turnover, it is necessary to make calculations for each individual period (year, quarter).
A quantitative indicator of turnover is the staff turnover rate. The formula for calculating this value is as follows:
Turnover rate \u003d Number of dismissed for the period under review / Average number of employees in the period under review * 100%
So, for example, if the organization had 20 employees in 2016, and for this year
5 people left, the coefficient under consideration will be 25 percent. This is a fairly large figure - a quarter of the team has changed over the year. If management wants to find out if turnover is a negative trend, they should do the same calculation based on 2015 figures. During this period, 4 people left the organization. The ratio is already 20 percent. This means that turnover increased in 2017, and management should take measures to reduce it.
For a more detailed analysis of the situation, calculations should be made for each department. Perhaps the fluidity is characteristic of only one department, the working conditions in which require urgent changes.
Staff turnover: other ratios
In organizations that pay sufficient attention to personnel policy, excessive staff turnover is hardly possible. However, if the management of the organization noticed such a problem and decided to deal with urgent personnel issues, it may be useful to calculate formulas for other indicators of turnover.
1. Fluidity can be implicit, hidden. To prevent layoffs, you can conduct an anonymous survey and get an indicator of potential turnover.
Potential turnover rate = Number of people considering quitting according to survey results / Total number of respondents * 100%
A high coefficient reflects the need to take urgent measures to motivate employees to continue working in this organization (introducing a monetary incentive system, raising wages, providing social support measures, etc.). If this ratio exceeds the turnover rate, this means that the measures taken in the organization to motivate employees are not effective enough.
2. In order to identify a department that needs special attention and quick response, you can calculate the turnover rate for this department.
Turnover Intensity Rate = Turnover Rate in a Specific Department / Turnover Rate in the Whole Organization
Normally, the coefficient should be about one.
3. When assessing the personnel situation, it is necessary to evaluate the effectiveness of the processes of adaptation of new employees and the commitment of old ones to their work. For this, the following formula is used:
Organization stability coefficient = Number of employees who worked in this organization throughout the entire period / Average headcount of the organization
Why do we need staff turnover calculations?
The efficiency of the company's work directly depends on the state of the workforce, its attitude to its work, management, and colleagues. A good leader understands this and, in the event of negative trends, is obliged to immediately respond to what is happening. Calculations of the above indicators of staff turnover not only allow you to identify the problem, but also detail it, identify "sick" departments in the organization and trace the trend of deterioration or improvement of the situation in the conditions of the measures taken.
The topic of this article is staff turnover: formula, calculation, examples.
As a rule, staff turnover is tracked through the registration of laid-off workers and the assumption that new employee. It should be remembered that most employees, if they quit, do so during the first weeks of work. Staff turnover is divided into physical staff turnover and psychological staff turnover.
Staff turnover is movement of workers in the enterprise. Staff turnover is a key problem for any organization in the modern world.
The staff turnover rate is calculated as follows:
1) By the layoff rate (using this formula, the number of employees who left in one year is calculated).
2) Staff turnover, formula:
(Number of layoffs in a particular period) should be divided by (Average headcount in a particular period) and multiplied by 100%.
3) According to the stable labor force index. Using this formula, the number of employees who have worked in the company for a year or more is calculated.
Staff turnover, formula:
(Number of employees who have worked for at least one year) divided by (Number of employees hired a year ago) and multiplied by 100%.
Thus, by applying the above two formulas, we can calculate the turnover rate.
When calculating staff turnover, the layoff rate is widely used. Since the dismissal of employees inevitably entails losses for the company, the layoff ratio allows you to calculate the company's costs that arise when employees leave.
The calculation of employee turnover may also include the determination of the half-time ratio of the duration of work. This coefficient allows you to determine how much time passes before fifty percent of a certain group of employees who simultaneously began working in the company left this company.
The calculation of staff turnover is necessary so that the company can estimate the amount of costs associated with the dismissal of novice employees.
The dismissal of employees can incur a significant loss of funds for the company. The cost of staff turnover rises when employees are highly specialized, when they are harder to find and when they require very thorough training. The cost of staff turnover is made up of the following blocks:
Lost production volume after the dismissal of the employee;
payment for the work of employees who perform work for a resigned novice (during the search for a replacement for a resigned employee);
the possible use of skilled workers in light work (again, in anticipation of another worker);
the cost of marriage and waste during the period when a new employee masters work;
the cost of attraction, selection and other similar expenses;
tuition costs;
administrative costs that are associated with the removal of a retired newcomer from the payroll;
low level performance during the training of new employees.
And, although, at first glance, all of the above points are not always visible, nevertheless, when hiring and firing new employees, the company may lose a sufficient amount Money. High employee turnover can significantly increase the company's costs while recruiting new employees.
In this article, we reviewed staff turnover: formula, calculations, examples.
If you try to evaluate the effectiveness of the work of personnel, then the most significant indicators will be the costs of wages and various payments, time spent on personnel workflow and turnover rate. Of these indicators, the last one is one of the most difficult to calculate and influence on it, there are many objective reasons for this.
Consider what the turnover rate is, what algorithms are used to calculate it, what factors can affect it.
Fluidity is not yet the antonym of stability
The epithet "fluid" is usually used to characterize liquid substances, it means the instability of the state, the tendency to its instantaneous change.
With regard to personnel, the term " fluidity" also means a change in status in the range "dismissal - employment."
Not only the frequency of changing this status is taken into account, but also the time during which the employee remains in the staff.
Under "staff turnover rate" (CTC) it is customary to understand the ratio of employees released from service during the reporting period to their average number for the same time indicator.
ATTENTION!“The turnover rate is a neutral indicator, but its growth is usually assessed as a negative factor, indicating the dissatisfaction of employees with any aspect of the life of the enterprise or the fact that employees are not satisfied with the management.
Does any layoff affect turnover?
Layoff in itself does not mean turnover. When the desired coefficient is calculated, only the reasons for dismissal are taken into account, which do not depend on industrial or state necessity. These include:
- own desire of the employee;
- absenteeism;
- leaving without permission;
- violation of discipline or safety;
- failure to pass the certification;
- working translation, etc.
The reasons for dismissal that do not count in determining turnover are:
- downsizing;
- staff reduction;
- reorganization;
- change of leadership and, as a result, personnel changes;
- retirement of employees.
Types of staff turnover
Depending on where exactly the personnel released from their positions are moving, they allocate different kinds fluidity:
- within the organization- employees change positions without leaving the firm or enterprise (according to own decision or initiated by management);
- external organizational- employees leave a particular enterprise or change it to another, sometimes even in a different production area.
If we take into account the various parameters for determining the fluidity, we can divide the fluidity into:
- absolute- the ratio of the number of all dismissed to the total composition of the enterprise for the selected period of time:
- relative- a more accurate indicator that allows you to calculate the turnover for each unit, within a certain age, gender, among employees with a particular length of service, on grounds for dismissal, etc.
In relation to the reason for leaving, turnover can be:
- active- the employee wants to leave or change jobs, as he is dissatisfied with some internal factors: salary, attitude, working conditions, etc.;
- passive- one or another employee does not suit the enterprise in terms of his labor or personal qualities.
Turnover in structural divisions
If employees from one department leave significantly more often than from others, this is an occasion to reconsider personnel policy and the attitude of management, and possibly other factors. In any case, it is necessary to find out the true reasons.
Turnover by seniority
Depending on exactly how long people worked before they quit, a variety of conclusions can be drawn:
- the first six months characterize the effectiveness of recruitment;
- the first year testifies to the existing mechanisms for the adaptation of employees;
- three years speak about the system of existing working relations, about the stability of the organization itself.
Fluidity depending on the reasons for leaving
The prevailing reasons for the dismissal of an employee from a position say a lot not only about the employee himself, but also about the order in the company.
In the work book it may be “of one's own free will” or “by agreement of the parties”, but the true reason may well be different.
It is better for management and personnel management to know the real factors that affect turnover than to hide behind soothing language. Only in this case it is possible to influence the state of affairs.
The formula for calculating the turnover rate
It is convenient to calculate the yield coefficient using the formula:
CPC \u003d (USZH + UIR) x 100 / MF,
where CPC– staff turnover rate;
USZh- the number of employees dismissed at their own request;
OIR- the number of dismissed workers at the initiative of the management (for absenteeism, on a criminal record, violation of discipline, etc.);
MF- the average number of employees for the period of the report.
Headcount - an independent indicator
The number of personnel on the lists for the reporting period reflects the dynamics of the composition of the workforce.
In order to determine it, you need to mark the number of employees on this date every month (usually this is done on the 1st of the month).
For example, for the year, the MF will be: (C1 + C2 + C3 ... + C12) / 12. Sometimes they consider pairs of months, adding up the indicators of every two months and dividing them by 2, taking the required number of pairs for the reporting amount: (C1 + C2) / 2 + (C3 + C4) / 2 + ...
Absolute and relative flow rates
Approximate limits have been established, within which turnover is considered normal - 3-5%, a relatively stable team has a CPC of 5-9%. An indicator of less than 3% indicates stagnation, figures of more than 50% indicate serious problems.
More precisely, you can determine the yield limits depending on specific indicators.
- For workers of different levels, different indicators can be considered the norm:
- for high-level managers - 0-2%;
- ordinary managers - up to 10%;
- ordinary employees - up to 30%;
- unqualified personnel - up to 50%.
- The limits are very different different areas labor:
- computer technologies - 8-10%;
- production - 12-15%;
- trade - up to 30%, etc.
IMPORTANT! CPC and MF are indicators that are the most informative when considered in dynamics.
Example of calculating the flow coefficient
In the massage parlor "Inspiration" in January 2015, 10 employees worked: an administrator, a cleaning lady and 8 masters. In February, two masters quit, and three new ones were hired in their place. In April, another master came.
In May, a decision was made to hire a junior administrator, and in June, due to the expansion of activities, another cleaning lady was hired. In September, one master asked for a calculation, as he was moving to another city. Thus, during the year 3 people were fired, 5 were hired.
Let's calculate the annual staff turnover rate of this salon.
First, let's determine the average number of employees:
C1 (January)- 10 people;
C2 (February)– 10-2+3 = 11 people;
C3 (March)- 11 people;
С4 (April)– 12 people
;
C5 (May)- 13 people;
С6 (June)- 14 people;
C7 (August)- 14 people;
C8 (September)- 13 people
MF \u003d (10 + 11 + 11 + 12 + 13 + 14 + 14 + 13 + 13x3): 12 \u003d 150: 12 \u003d 12.5.
CPC for the year: 3 x 100 / 12.5 = 24%. For enterprises of this level, this is quite a normal indicator.
Source: https://assistentus.ru/sotrudniki/koefficient-tekuchesti-kadrov/
Personnel turnover in organizations. Its types and causes. Staff turnover rate and calculation formula. How to solve a problem?
Staff turnover- a general concept that refers to all types of movement of labor from migration within one enterprise to transitions between different sectors of the economy.
This indicator reflects the effectiveness of management, as well as indicates the stability and integrity of the organization.
This article will describe existing varieties of this phenomenon, what it comes from, statistical analysis with evaluation of the results and possible strategies for solving this problem.
What are the types
There are several varieties of this phenomenon and each of them has its own characteristics.
- Physical- the actual number of employees who leave the enterprise for various reasons.
- Internal- moving between different positions, departments and branches within the same company. If this indicator is high, then we can draw conclusions about high mobility within the organization. This can facilitate the exchange of experience, and in some cases positively influence the psychological climate.
- External- the number of personnel who move from one company to another, as well as move between industries and even sectors of the economy.
- Natural- this is a normal constant staff turnover and it is 3-5% per year and is a normal process due to which staff is updated without harm to the organization and the labor process.
- Excess- a high turnover rate is an unfavorable socio-economic indicator, indicating the instability of the company and the inefficiency of personnel policy.
With all the variety of reasons for high staff turnover, they can be conditionally divided into two main groups - external and internal.
The external ones include the deterioration of the socio-economic situation in the region or the policy of competing companies.
Such circumstances usually do not depend on the leadership, but this does not mean that you need to sit back - you can find the best way out of any situation.
On the other hand, there are internal factors, and they most often encourage people to change jobs. Here are the most common ones:
Interesting Facts
- Employee turnover in an organization is also called "revolving door index". This expression comes from American corporate culture, as many office buildings in the United States used to have revolving doors.
- Some analysts also distinguish psychological fluidity, it is also called latent. This is when, in fact, a person remains in his position, but does not consider himself involved in the activities of the company, or feels hostility towards it. Unfortunately, most managers underestimate the severity of this phenomenon, although it often causes a permanent loss.
- Recently, the domestic labor market has seen a trend of “leaving by departments”. In this case, the whole team leaves their place of work and joins a competitor. Undoubtedly, such a turn of events could be fatal for the whole enterprise.
Staff turnover rates
An average annual turnover of 3-5% of all staff is considered normal. However, these are very generalized figures and allowable limits can vary greatly depending on the field of activity, the position in question and many other factors.
- Top management - no more than the norm 2% in year;
- Middle managers - 10% ;
- Ordinary workers - 20-30% ;
- Low-skilled - up to 50%;
- in trade before 35% ;
- In the IT field - 5-10% ;
As you can see, there is a clear pattern: the more responsibility and qualification the position requires, the lower the percentage is considered normal for it.
Personnel policy and personnel errors of organizations
Staff turnover and how to calculate it correctly
(USZh + UIR) x 100 / ES, where:
USZh- who left of their own accord;
OIR- dismissed at the initiative of the authorities;
emergency – average population workers;
CHS = (CHS1 + CHS2 + CHS3) / 3;
Evaluation of results
When an employee decides to quit, it is very important to find out his real motives. Many Western firms conduct interviews before leaving, as this helps to establish a kind of feedback and correct mistakes.
Also in our country, cases are quite common when, in order to avoid unpleasant situations the director "offers" to write a letter of resignation of his own free will. In this case, it will be more difficult to figure it out, but if possible, you need to find out what became the real motive, even if this is done behind the scenes.
Ways to solve the problem
Before you act, be sure to figure out why you have a high turnover of staff. For this, special studies are done, or specialists from relevant agencies are hired to help them understand and solve this problem. Here are some general tips:
- Select quality staff. Often empty workplace management perceives it as a loss, and seeks to close the vacancy as soon as possible. However, it is better to wait a little and wait for the ideal candidate. Always pay attention to the life principles and values of the applicant, they should correspond to the corporate ones as much as possible. Give preference to sociable people, as they will be able to quickly learn everything they need from colleagues, it will be easier for them to pass the adaptation period.
- Create ideal conditions for newbie adaptation. Statistics show that the first three months in a new place are critical period for which the most layoffs occur. The probationary period is just the time when a person determines his attitude to a new job, and if the loyalty of subordinates is important to you, then it is better to make every effort to adapt it (see Probationary period when hiring). An example would be the introduction of mentoring programs, incentives, or gamification of the work process.
- Adequate professional development programs which should be accompanied by appropriate career growth. Any person experiences satisfaction when he develops and becomes more qualified and in demand. And it is you who should give him such an opportunity, since it is in your interests.
- Provide competitive working conditions and wages. To do this, you need to do research working conditions your competitors down to the smallest detail - from cool water in the office to social conditions. package. Enter a system of benefits and compensation that would protect your subordinates and their families. For example, for production, an expanded insurance system would be a big advantage.
- Conduct ongoing training and development for managers. These can be either full-time trainers and coaches, or some kind of external courses. No one will doubt that high-quality and professional leadership at all levels not only increases profits and reduces costs, but also significantly improves the atmosphere in the team.
- Give your subordinates space for creativity and encourage creative initiative in every possible way. In order for a person to become a truly loyal employee, his duties must become something more than just a job for him, he must feel that his ideas are important for the common cause. You can introduce a system of bonuses and rewards for showing initiative, but it is more important to simply respect the proposals of your subordinates, in every possible way to demonstrate that this is appreciated by the authorities.
- Take steps to improve interpersonal relationships. A variety of team building and corporate events are well suited for this. However, you should not go too far - if the company organized a banquet for employees, then it is better to let people talk and get distracted from everyday work. At the same time, the practice of conducting trainings during corporate field trips has proven itself very well.
Personnel training system. Forms and methods of personnel training
Experienced managers understand what high turnover means - this is a very serious problem for any enterprise, and it always entails big losses.
We need to constantly monitor and, if possible, identify the weaknesses of our personnel policy, and work on the mistakes.
After all, any commercial organization, whether it be an office or production, is primarily the people who work in it.
Staff turnover
Source: https://promdevelop.ru/rabota/tekuchka-kadrov-v-organizatsiyah/
How to calculate staff turnover: what the coefficient shows, the calculation formula, reasons, ways to reduce
The effective work of the company depends not only on the successful resolution of production tasks, but also on how professionally and smoothly the team works, how strong its corporate spirit is, how satisfied the employees are with the conditions and results of their work. And we absolutely cannot dispute the failure of the case, which on the way to the result passes from hand to hand. Each new employee needs a fairly long period of adaptation and introduction to the course of business, training, which requires not only time but sometimes financial costs. In the future, an employee who, for any reason, has lost motivation and interest in work, is unlikely to be able to significantly move the matter forward. How to calculate the turnover rate using the formula and how to start controlling the process of constant employee turnover?
Basic information about employee turnover in the organization
High staff turnover is an indicator of the wrong personnel policy of the employer
Staff turnover as a phenomenon of mass change of personnel in an enterprise is an extremely important indicator of the effectiveness of enterprise management. This indicator reflects the frequency of layoffs at the enterprise, due to the dissatisfaction of employees with the existing working conditions or the dissatisfaction of the employer with the results of the work of employees.
Staff turnover is not the only name for the phenomenon under consideration. In the West, the excess movement of personnel is called the "revolving door index", in Russia (unofficially) - "churn".
Of course, some minimum level of personnel movement is absolutely normal. The infusion of new forces, ideas, approaches into the team can "revive" the production process. But it is a completely different matter when the staff changes constantly, not having time to get used to and join the process.
At the time of recruitment of new personnel, it is necessary to attract more qualified employees, and they, in turn, also begin to lose interest due to the lack of self-realization.
This vicious circle is only gaining momentum over time, which means that the problem needs to be addressed urgently.
The first step towards solving the problem of production inefficiency caused by inefficient personnel management is an analysis of the current situation. A correctly calculated turnover rate makes it clear to the employer whether it is necessary to launch measures to reduce the level of negative movement by staff, and if they are carried out, how effective they are.
Causes of employee turnover and what contributes to layoffs affecting it
Speaking about the concept of staff turnover, two groups of reasons are usually mentioned:
- Reasons that directly affect the increase in the negative movement of frames.
- The reasons (they are also grounds) for dismissal, the presence of which makes it possible to attribute the fact of termination of the contract with a specific employee to staff turnover.
The first group of reasons includes:
- poor-quality recruitment - haste, the desire to close the vacancy at any cost, insufficient informing the applicant about working conditions, etc .;
- ill-conceived conditions for the adaptation of newly hired employees, which in some cases leads to their failure to adapt at all over the years;
- uncomfortable working conditions;
- personal dislike for management, disagreement with management methods, undeveloped relations with the team;
- lack of opportunities for promotion, general dissatisfaction with the work function performed;
- lack of qualifications, indiscipline of employees, which entails their dismissal at the initiative of the employer.
As you can see, the first group of factors includes circumstances that depend primarily on the employer. Indeed, even if employees are systematically dismissed for subjective reasons (for example, due to violations of labor discipline), this may indicate that the employer has organized the recruitment system incorrectly.
The grounds for dismissal, which are taken into account when calculating staff turnover, are as follows:
- voluntary care;
- dismissal by agreement of the parties;
- termination employment contract at the initiative of the employer due to a mismatch of qualifications (including dismissal based on the results of the test), indiscipline, etc.
Types of fluidity
The theory of personnel management distinguishes several classifications of staff turnover at once, carried out according to different criteria:
- By the scale of the problem:
- natural (background) - normal level of fluidity;
- excessive - fluidity, affecting production performance.
- According to the prevailing initiator of the negative movement of personnel:
- active - the initiative to dismiss comes from employees who are not satisfied with working conditions, etc.;
- passive - mainly layoffs occur due to insufficient qualifications of workers at the will of the employer.
- According to the direction of movement of workers:
- internal - the movement of employees within the organization (rotation of personnel);
- external - transition to other organizations.
- Outward expression:
- physical - expressed in mass layoffs;
- psychological (hidden) - expressed in the dissatisfaction of employees and the readiness to quit at the first opportunity, in the detachment from the affairs of the company.
Latent, potential or psychological fluidity - an indicator that cannot be calculated, but has a strong Negative influence on the corporate spirit in the team
In practice, the correlation of the obtained turnover rate and the prevailing circumstances with classifications according to various criteria allows a deeper analysis of the problems existing in personnel management, and the most accurate determination of the causes of negative phenomena.
Fundamentals of staff turnover analysis
The analysis of staff turnover, if it is not carried out formally, but in order to obtain the most objective picture of the effectiveness of the personnel policy pursued in the organization, cannot be reduced to a dry manipulation of numbers. This is due to several reasons:
- At a large enterprise, the calculation of the turnover rate without taking into account at least the areas of activity is hardly able to give an objective picture - this is akin to finding out the "general temperature in the hospital." Analysis must be carried out in relation to each (or individual problematic) structural unit, after all, the negative movement of personnel often has an underlying reason precisely in the specifics of the activity.
- When analyzing, it is important to take into account the hidden motives for dismissal, because it is not always reflected in practice in documents legal basis corresponds to the true motives of the parties to labor relations. At the same time, it is useful to keep separate turnover statistics for each individual reason for termination of the contract.
- When calculating the “turnover”, one should take into account the distribution of layoffs by the duration of work of those laid off at the enterprise. After all, the establishment of a high degree of turnover among those who have worked for less than a year and the same percentage among specialists who have worked for years ultimately leads to the identification of several different factors provoking the movement of personnel.
An employer (or an HR officer) who is responsible for determining staff turnover necessarily finds out not only the real reasons for the dismissal of each employee, but also independently analyzes possible shortcomings in the process of hiring, adaptation, training and directly labor activity.
Flow calculation procedure
The use of the formula for calculating staff turnover involves a preliminary selection of the time period for which the coefficient will be calculated - a month, half a year, a year, etc. All dismissals are selected for the indicated period of time for reasons that affect turnover. In addition, it is first necessary to calculate the average number of employees for the period.
The formula for calculating the average headcount
Average headcount = (headcount of the company (division) at the beginning of the period + headcount of the same company (division) at the end of the period) / 2.
The formula for calculating the coefficient
Turnover rate (in percent) = number of employees dismissed for reasons affecting turnover during the calculation period / average headcount for the same period × 100.
An example of the calculation of turnover with the analysis of personnel policy by department
Branch No. 1 of Capital Bank from year to year shows unprofitable results.
The bank's management suggested that the reason for this was an ill-conceived personnel policy - adopted immediately after the end of educational institutions young specialists are sent to work mainly in this department, and after a few months they are fired. I. P. Sergeev, a specialist in the Bank's HR department, calculated the staff turnover for department No. 1 for the period from 10/01/2015 to 09/30/2016.
Indicators used in the calculation:
- payroll for the department as of October 1, 2015 - 243 people;
- payroll for the department as of September 30, 2016 - 246 people;
- 35 people were dismissed from the department for reasons affecting turnover during the billing period, 30 of them voluntarily.
Calculation of staff turnover for department No. 1:
35/((243+246)/2) × 100 = 14.31%
Having studied in detail the questionnaires of dismissed employees, Sergeev found out that most of them named the lack of their own experience as the reason for dismissal, which often led to violations and errors in customer service.
An analysis of the duration of work of all current employees showed that only 10% of them have been working in the bank for more than three years.
In conjunction with the obtained value of the staff turnover rate, the analysis allows us to conclude that there are shortcomings in the distribution of personnel in the whole bank and some shortcomings in the personnel selection system.
Natural indicators and deviations from the norm
In theory, the normal (background) level of turnover, due to natural processes in the field of labor relations and not having a significant impact on the performance of production, ranges from 3 to 5%.
Such a percentage is intended to cover that part of the layoffs that falls on reasons beyond the control of the parties - the achievement of retirement age by employees, conscription for military service, dismissal for medical reasons, etc.
In practice, the normal level of fluidity is determined immediately by many factors, including:
- enterprise size;
- specifics of production;
- seasonality;
- location of the enterprise (large settlement or small village);
- company competitiveness;
- prevailing categories of employees (managers, office workers or workers).
In general, for small enterprises, a staff turnover of up to 12% is quite acceptable, for large enterprises - up to 15%.
How to control the percentage of turnover. Measures to reduce it
The most effective way to reduce staff turnover is to stimulate the increase in the level of value of work for each employee
Controlling staff turnover, of course, means stimulating its reduction to a minimum (it is impossible to completely exclude this phenomenon). The most effective approach to the problem is to identify the root causes of "churn" and eliminate them in a timely manner. However, there is also a universal technique - increasing the value of the place of work in the eyes of employees.
A modern approach to motivating staff as the most effective way retention of employees calls a retreat from the standard single approach to everyone, the introduction of differentiated systems for career advancement, remuneration, etc.
Having set a goal to transform the personnel policy in order to reduce staff turnover, the employer must move in several directions at once:
- Optimization of the remuneration system: development of a bonus system, allocation of a permanent and additional part of earnings, material simulation for overfulfillment of plans, etc.
- Maximum liberalization of the system of fines.
- An increase in the social package, perhaps - its differentiation (provision of various benefits to different categories of employees, depending on the prevailing needs).
- Increasing the flexibility of work and rest regimes.
- Improving the quality of training and education of employees, the introduction of individual career planning.
- Intensified work with leading personnel - improving management skills, introducing additional measures of responsibility for arbitrariness, etc.
Personnel management is a complex and painstaking job. And the main indicator of the quality of such work is the low level of staff turnover.
And despite the fact that when analyzing the situation in the field of personnel movement, in the vast majority of cases, we operate with indicators for the whole organization, the golden rule of personnel policy for each employer should be individual approach to the employee. After all, it is from the attitude to the work of each of them that the corporate spirit of the team is formed.
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