Employee Turnover Management

Employee turnover management involves strategies and techniques that organizations use to reduce the number of employees who leave the company. This can include offering competitive compensation and benefits packages, improving working conditions, providing opportunities for professional development, and implementing effective communication and recognition programs. Additionally, conducting exit interviews with departing employees can help organizations identify the reasons why people are leaving and make changes to retain current staff. It is important to note that some level of turnover is normal, but high turnover can be costly and disruptive to a business.

How we Manage Employee Turnover

Employee turnover measurement

The most basic technique we use to track turnover is to calculate the annual rate. The percentage may be calculated by dividing total departures by total workers and multiplying by 100. Lower scores are preferable.

One issue with total turnover is that it includes leavers over whom you have no influence, such as personnel retiring due to old age or relocating to another branch. A turnover figure that is more focused on total dismissals or total voluntary resignations may be more informative.

Creating a ‘stability index’ for retention

To calculate retention, we divide total personnel with one or more years of service by total staff one year ago and multiply by 100. This is referred to as a stability index. Higher scores are preferable.

Understanding the cost of staff turnover

Putting a price tag on staff turnover may help you build a business case for improved management and strive toward cost reduction.

The cost of turnover covers the whole cost of replacing a departing employee. These expenses are both financial and administrative in nature, and frequently include:

• Costs of hiring, including advertising and the selection process
• Temporary coverage while the position is vacant
• Replacement employee education

Total leavers multiplied by the cost per leaver yields the yearly cost of turnover.

The more rare a job’s talents are, the higher the costs and the greater the turnover.

Understanding the reasons why workers depart

Knowing why workers leave your company is critical if you want to decrease turnover.

Policies you may put in place to track reasons for leaving include:

• Analyzing data from HR administration such as resignations, reference requests, dismissals, retirements, and redundancies.
• Using exit interviews, in which you may ask departing workers directly why they are leaving.
• Conducting employee surveys to inquire about existing employees’ work happiness and intentions to quit in the future.

We are cautious that workers may not always be truthful about the reasons for their departure!