How To Calculate Employee Turnover

Table of contents:

How To Calculate Employee Turnover
How To Calculate Employee Turnover

Video: How To Calculate Employee Turnover

Video: How To Calculate Employee Turnover
Video: Employee Turnover Report Excel, Calculate Turnover Rate 2024, April
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Employee turnover rates, which signal how comfortable it is to work in a company, speaks not only of the activities of personnel services. They can be used to judge the existing system of motivation, management principles, the presence of a system for adaptation of newcomers and a system of work with those who quit. These are indicators of the company's corporate culture, the result of work with personnel, which indirectly affects profit. Therefore, it is so important to take these indicators into account and control them.

How to calculate employee turnover
How to calculate employee turnover

Instructions

Step 1

Staff turnover is the quotient of dividing the number of volunteers who quit for a certain period by the average number of employees for the same period of time. Staff turnover is expressed as a percentage, so the result of the division should be multiplied by 100. Staff turnover is calculated for the planned (Tkp) and average (Tx) periods using the formulas:

Tkp = the number of layoffs during the planning period / the average number of employees during the planning period.

Tcs = average annual number of laid off * 100 / average annual number of employees.

Step 2

A staff turnover rate of 3-5% is considered natural turnover. It is mainly associated with the fact that some part of the workers retired or quit due to a change of place of residence. Such an indicator contributes to the natural and timely rotation of personnel; it should not cause concern for the management of the enterprise and its personnel department. Indicators above 5% can cause significant economic losses, create personnel, technological, organizational and even psychological difficulties.

Step 3

Analyzing the personnel policy of the enterprise, economists, in addition to the staff turnover rate, use such additional parameters as the stability coefficient (Kst) and the tightness coefficient (Kz).

The coefficient of stability (constancy) is calculated by the formula: Kst = Hss / Hsht, where:

Heart rate - the average number, Chsh - the number of employees according to the staffing table.

Step 4

The tightness factor is calculated by the formula: Кз = Рв2 / Чss, where:

Рв2 - the number of retired employees, whose work experience at this enterprise was less than 2 years. Usually, it is in this category of employees that the highest turnover is observed.

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