Easy Calculation for Employee Turnover

it’s really not that hard to calculate your staff turnover, and the results can tell you a great deal about your business’

Employee turnover is costly

  • the type of role
  • how long the person’s been with you
  • the level of skills and knowledge the person had
  • the initial recruitment cost when we brought that person in
  • the productivity cost of whoever it was that was trying to train the person up
  • the productivity loss in terms of having a new person there in the first place.

losing that long-term employee is likely to cost closer to 200% of their salary’

Direct and indirect costs

  • job ads
  • recruitment agency fees
  • psychometric tests
  • time of the hiring manager
  • training the new employee into their role, including training courses.
  • productivity loss during the time of the vacancy
  • productivity loss while the new person gets up to speed.
  • morale among other team members, because a missing team member reduces their productivity, and could also encourage them to look for a new job.
  • poor customer service or poor stakeholder relationships prior to the person leaving because they’re headed somewhere else, and also while their replacement learns.

Why measure staff turnover?

If you don’t measure something, it’s impossible to quantify it‘

Perceptions of employee turnover

How to calculate staff turnover

  • the number of employees you had at the start of the period
  • the number of employees you had at the end of the period.
  • the number of employees who left during the period
  • 27 were employed at the start of the year
  • 32 were employed at the end of the year
  • 8 employees left during the year

Calculating the cost of employee turnover

What’s the right level of staff turnover?

Resignations, redundancies or terminations

The Takeaway

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Karen Kirton

Karen Kirton

Founder of Amplify HR — a consulting company in Australia that specialises in enabling businesses to find, grow and keep great people. www.amplifyhr.com.au