By definition, “employee turnover” refers to the change of employees in a company, either by a layoff or by voluntary withdrawal.
In short, one employees leaves, and another employee replaces them.
Very simple concept, but far from simple when thinking of ways to reduce it.
Over the next few weeks we will be diving into what employee turnover is, how it affects your business, and more importantly, new ways to address this challenge.
Companies have been trying to crack the code into ways to reduce their employee turnover since the dawn of business, and for good reason – Our employees are indeed our most valuable asset for the simple fact that they are our most expensive, and few things affect our bottom lines more than rotating team members.
Pre-selection, interviewing, hiring, training and the ongoing support and development associated with each employee takes money, lots and lots of money. Every new hire is an investment and an investment that companies are trying to dearly protect.
Successful companies are not only great at attracting new talent, but they have a knack from ensuring their talent is growing and well taken care of, both in financial terms and in terms of personal and professional growth.
What are your current employee turnover ratios?
In order to determine your employee turnover we must first explore the concept of “turnover index of personnel.” The “turnover index of personnel” serves so that companies can accurately, and in a time efficient manner, identify situations of dissatisfaction amongst workers and/or deficiencies in the processes of selection and hiring of employees.
To make this calculation the following information is needed:
- The number of people hired in a set period of time
- The number of dismissals and voluntary exits during this time
- The number of company employees at the beginning of the set period
- The number of company employees at the end of the set period
With this information we can begin to see what the turnover looks like in your organization in order to create ways to minimise it.
Want to calculate how much you could save on employee turnover?
Have a look at our online calculator.
Tradler Co – Empower your team