Staff turnover: calculation formula. Staff turnover is ...

Looking at employment sites, you can see that the same companies periodically place ads for the same job. Why is this happening? This is connected with such a problem of modern labor organization, as the turnover of personnel in the enterprise. It would be a great understatement to say that "turnover" has a negative impact on business building. Moreover, employee turnover is one of the reasons why it is impossible to form a permanent and well-coordinated team, which significantly reduces the corporate spirit of the company. What caused this negative phenomenon and how to deal with it?

The essence of the "turnover" of staff

Staff turnover is the movement of personnel (labor), which is caused by dissatisfaction with the position (workplace) of employees or the dissatisfaction of the company by a specific specialist. This is the norm that shows how often the employee loses and acquires work. Indicators of staff turnover is also called the "index of revolving doors", as they make it clear how long the employee of the company takes up his post.

It should be noted that this phenomenon is a kind of "organizational plague" for most modern domestic companies. Staff turnover is also a voluntary official dismissal of an employee from one firm with his subsequent employment in another organization on the basis of his own decision. Insufficient consideration of the factors of social efficiency can cause a constant "turnover". High turnover rates can also signal a threat to the integrity and stability of the company.

Types of staff movement

Carrying out the analysis of personnel turnover, five main types can be noted:

1. Intraorganizational - is associated with personnel reshuffles within the company.
2. External - labor movements occur between organizations, individual industries and spheres of the economy.
3. Physical - is associated with the voluntary departure of an employee from the organization for various reasons.
4. Psychological (hidden) - occurs when the employee does not leave the company physically, but actually ceases to participate in organizational activities.
5. The natural "turnover" (up to 5% per year) - is a natural process in the personnel policy, contributes to the renewal of labor potential.

Taking into account the last point, it can be noted that a low level of staff turnover is beneficial for the company, as it brings fresh thoughts and strength to the team. However, frequent changes in the head of an organization or management personnel can lead to stagnation and a decline in performance. In addition, sometimes this leads to the so-called "wave effect", when other employees of the company follow the leading staff. Another unpleasant moment - the dismissal of "fresh" staff, if the funds spent on his training, have not yet paid off.

Causes of negative staff movement

Staff turnover is a "disease" of many companies. As is known, it is necessary to fight not with symptoms, but with the causes that caused this phenomenon. What are the sources of "turnover"?

1. Poor-quality selection of personnel often becomes the root cause for an early dismissal. The desire of the head of the company to quickly close the free space, the desire of the recruiting agency to get its fee, the desperate attempts of the applicant for a job to find the best place lead to 99% of the cases of early or late dismissal.
2. An unsuccessful process of adaptation or, in general, the absence of such a process causes the employee to resign during the probationary period, in the first weeks of work.
3. Uncomfortable working conditions also often lead to a loss of labor. A person spends most of the day's light at his workplace. And on how much he will be comfortable, depends on his decision to leave or further stay in the organization.
4. The level of staff turnover also largely depends on the degree of staff satisfaction with their management. Personal disaffection, discontent with management methods quite often become the reason of dismissals.
5. Impossibility of career growth. Any employee who has ambitions and has worked for some time in the company, begins to think about moving up the career ladder or about raising wages. In the absence of proper motivation and the possibility of growth and self-development, the employee leaves the firm. It should be borne in mind that the level of wages is not always a necessary motivator for quality work. This can also be recognition, popularity and other non-material, but psychological factors.
6. A person is subject to emotional influence, so there are occasional situations when one employee leaves after his colleague, relative, friend.
7. And, of course, the incompetence of the employee, his inability to perform his work within the set deadlines, the inability to work in the team can cause dissatisfaction with the employee on the part of the head, after which also dismissal may also follow.

What contributes to the care of staff?

The analysis of staff turnover also helps to identify several factors that have a direct impact on the "turnover" of the workforce:

• Age restrictions (it is considered that the most risky is the departure to another job of people under the age of 25);
• Insufficiently high level of qualification (the higher the skill level of the employee, the less often he changes work);
• The actual place of residence of an employee (the closer a person lives to his place of work, the less risk of his leaving the company);
• Seniority (an increased level of staff turnover is observed in a group of employees whose work experience in the organization is less than three years).

How to eliminate the reasons for employee turnover?

There are certain methods for reducing the impact of the main factors of the negative movement of labor.

1. Competitive remuneration. It is necessary to revise the rates, payments for sick leave, benefits and holidays with the involvement of specialists in this field. Underpayment or overpayment leads to unjustified economic losses.
2. Implementation of a fair wage structure. It is necessary to adequately assess the complexity of each employee's work in order to identify possible discrepancies in rates. The bonus system also needs to be analyzed and revised.
3. Stabilization of earnings. Unstable payments of wages can lead to an increase in staff turnover.
4. Improving the working conditions of employees: flexible schedule, comfortable office furniture, room for rest and food.
5. Refusal to perform unnecessary work. All assignments that are performed by company employees must be really necessary. However, do not lead people on the principle of "juicer" - this leads to rapid depletion of labor potential.
6. Creating a positive image of the company. Employees are more likely to give preference to firms with a good reputation, which may interest candidates for employment with interesting work, excellent working conditions, career prospects, self-fulfillment opportunities, insurance and bonuses.

Staff turnover - calculation formula

To find this value, it is necessary to divide the number of employees who have worked at least one year by the number of employees who got a job in the last year and multiply the result by 100%.

The formula of staff turnover can also include finding the coefficient of half the duration of the work. This allows you to determine what time passes before half of the employees of a particular group who simultaneously started working in the company left it. The calculation of staff turnover is necessary in order to determine what level of expenses occurred due to the dismissal of new employees. The departure of workers from the organization can incur serious economic losses for the employer.

Calculation of the coefficient of turnover of staff

This indicator can be determined on the basis of:

• The rate of layoffs (you can calculate the number of retired employees in one year);
• Turnover of staff (the number of layoffs for a certain period of time is divided by the average number of personnel for the same time interval and multiplied by 100%);
• The index of stable labor - on the basis of this formula it is possible to determine the number of employees working in the company for a year or more.

The coefficient of layoffs is quite widely used, since this phenomenon always causes certain losses for the company. This indicator and the calculation of employee turnover helps determine the costs of the firm that arose when employees were fired.

The formula for calculating the coefficient

The calculation of the coefficient of turnover of frames is carried out according to the following formula:

• Ktek = (Xszh + Xdpc) * 100: S, where
  
  - Ktec is, in fact, the coefficient of staff turnover;
  - XJ - the total number of those who quit their own volition for a specific period;
  - HDPs is the number of dismissed for absenteeism, a conviction or violation of labor discipline for a particular period;
  - S - the average number of employees for a specific period (often an independent indicator, because it reflects the dynamics of changes in the composition of the team).

Calculation of the average number of employees

To find this indicator it is necessary to mark monthly (on the 1st day) the list number of employees of the enterprise that falls on that day. At the end of the reporting period, it will be possible to determine the average number of people according to the formula:

• S = ((S1 + S2): 2 + (S2 + S3): 2+ ... + (Sn + S1n): 2)): n, where
  
  - S - average number of employees;
  - S1, ..., Sn - list number on the 1st day of each month up to the reporting date;
  - S1n - list number on the 1st day of the month following the reporting month.

The fluctuation of the coefficient of turnover of frames in the range from 3% to 5% is considered the norm. Deviation in the smaller side can be calculated as stagnation in the team, and excess - as a decrease in stability and an incorrect approach to managing personnel.

What does the "turnover" consist of?

Each enterprise faces such a problem as staff turnover. The formula for calculating the cost of movement of personnel consists of the following indicators:

• The amount of production that will be missed if the employee is fired;
• Additional remuneration of employees who temporarily fulfill the duties of a resigned employee;
• Attracting highly skilled workers to easier work;
• The cost of waste and marriage received when a new employee is recruited;
• Costs associated with attracting and selecting candidates for vacancies;
• Expenses for training or retraining of employees;
• Administrative costs related to the removal of the person being dismissed from the payroll;
• A decline in the level of labor productivity during the training of new employees.

Methods for minimizing employee turnover

Decrease in staff turnover is achieved due to the following methods of personnel management:

• Determination of the reasons that caused the dismissal of each employee, and statistical recording of these causes;
• Maintaining general statistics on layoffs;
• The introduction of programs for horizontal and vertical movement of personnel;
• Development of methods for selection and adaptation of employees, as well as the use of mentoring;
• Increasing the company's image on the labor market;
• The creation of temporary working groups to work on projects;
• Formation of personnel reserve;
• The involvement of HR managers and consultants to work with personnel.

Ways of retaining employees

To keep valuable shots that are on different stages of the career ladder, companies resort to various means and methods. So, for example, various benefits packages for ordinary employees and management personnel can be formed. For example, ordinary workers can pay for public transport by the company, medical insurance, free meals and refresher courses. A package of benefits for managers can consist of such positions as a flexible work schedule, the provision of loans and loans on favorable terms, a fee for the implementation of the plan, special promotional offers.