# How To Determine Employee Turnover

## Video: How To Determine Employee Turnover

The indicator of staff turnover at the enterprise is one of the most important - it can be used to judge the effectiveness of not only the personnel department, but also the enterprise itself. In order for it to truly objectively reflect the real-life situation with personnel, many factors must be taken into account when calculating, including crisis situations in the market, downsizing processes, etc. Personnel turnover and analysis of its causes are the reason for making management decisions.

## Instructions

### Step 1

Economists propose to use the formula for calculating personnel: TC = CC / SSH * 100, where TC is the turnover of personnel for a certain period, CC is the number of people who quit the enterprise for the same period, SS is the average number, which is determined by the time sheets - timesheets …

### Step 2

But this formula can give little to analyze the causes of this phenomenon and changes in its parameters. To reduce employee turnover in an enterprise, which affects its performance, you must define it for many reasons, from the style of managing the enterprise to the working conditions of the workers. For the analysis of staff turnover, you need to find out the reasons that served as the reason for the dismissal, and keep their statistics. Break down this statistics by number in certain periods: for a year, for a quarter, for a month, distribute the number of dismissed employees by departments and divisions, positions, length of service worked at a given enterprise. Consider the grounds for dismissal in each case.

### Step 3

Find out what is the reason for staff turnover in those departments in which this indicator exceeds the average level for the enterprise. It can be corrected if the reason is lower wages, inadequate to working conditions, or the wrong leadership style. There are reasons that are natural and that cannot be influenced - reaching retirement age, moving to another city.

### Step 4

An analysis of the time worked by a retired employee at a given enterprise can serve as an indicator of the effectiveness of the work of the personnel department. The reasons for the dismissal of those who have worked for less than a year are, as a rule, mistakes in personnel policy, when personnel are recruited whose expectations are overestimated. Those who have worked long enough may be fired because of low wages or worsening working conditions. All this can also be justified and corrected.

### Step 5

The calculation of the employee turnover rate, taking into account all of the above parameters, makes it possible to use this value as a powerful management tool. This is an indicator that signals the effectiveness of the company. Prompt response to its change is the key to its successful operation.