Analyzing Your Staff Turnover Will Unlock Valuable Insights Into How To Create A Better Company And Save Money
Do you draw enough insight from your staff turnoff rate? The turnover rate of your business gives a clear indication of where you’re heading. It’s a good marker of growth, granting an assessment of your company culture as a whole. An excessive turnover costs you money and reigns in growth, whereas a strong staff bold will raise profits and productivity. We’ll be showing you what your staff turnover rate is, how to read it, and what to do to improve this vital metric. There’s also a handy turnover calculator coming up.
What Is Staff Turnover Rate?
Staff turnover rate is the percentage of your staff members that leave your company within a measured period. Most companies start by calculating staff turnover over a month and then again at specified intervals such as every three or six months. Charting turnover will show you whether you’re building effective internal processes, good company culture, and growing morale or if you’re chasing skilled workers straight out the door.
Why Should I Care About Staff Turnover?
Successful businesses are built upon a foundation of cohesive teams and staff members who share ideas, aspirations, and goals. Voluntary and involuntary turnover is impossible to escape – people will leave your company. However, the better you manage staff turnover and strengthen good relationships, the more effective the control of your enterprise.
High staff turnover builds a poor brand image. Just think about how it looks if there’s no continuity in your enterprise. No friendly faces that stick. No coming back to the same sales agent, marketer, or manager. If there’s a new frown staring at customers every month, they will come to rash conclusions quickly. Who knows, they could be right, which is precisely why monitoring turnover is so significant.
It’s not just brand building that takes a lasting, hard knock from a high staff turnover rate. Hiring new staff consumes time and resources. No matter how efficient your onboarding may be, staffing comes at a high cost. Between the downtime and drop in productivity of your teams to deficits in output and resources that must be invested into growing new customer and supplier relationships – high staff turnover is expensive.
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What Does My Staff Turnover Rate Indicate?
Your staff turnover rate shows the quality of your hires. It also helps you track the success of new endeavors. With an unemployment rate of just 3% within tech and low percentiles for related and similar industries, retaining skilled staff is more vital today than ever. If you’re hiring new staff and they keep leaving within the first 45 to 60 days, then you know something is wrong with your recruitment processes, not your staff retention policies and efforts to raise consistent morale.
What Does Staff Turnover Cost Me?
Read all the information below before using the My Opportunity Calculator Link. Turn a complicated calculation into something straightforward by accessing MyOpportunity’s Staff Turnover Cost Calculator . In minutes, you’ll know exactly how much money your staff turnover is costing you.
How To Calculate Staff Turnover Rate using our Calculator
Let’s take a look at how to calculate the staff turnover rate manually. All information required to be entered in the spreadsheet will be all the data fields in yellow color and with all numeric value that contains no commas or decimal points.
Step 1 – Current Employee Cost
Select The current Employees Annual Base Salary and enter your dollar figure.
Step 2 – Vacancy Costs / Loss of Productivity from other Employees filling in for the Vacant Position
Select the # of Days Position Vacant and enter the numeric figure.
Step 3 – Separation Cost & Cost to Hire Replacement
Select the following fields. (A) Departing Employee – Other Separation Costs, (B) New Hire – Resume Screening (Hours), (C) New Hire – Interviews (Hours), New Hire – Advertising Costs, (D) New Hire – Other Admin Costs and enter the numeric figures as needed.
Step 4 – New Hire Training Costs
Select the following fields. (A) Mentor or Manager Salary, (B) Total Training Days Consumed, (C) Other Training Costs, and enter the numeric figures as needed.
Step 5 – Days to Previous Productivity
Select the following field. Days to 100% Productivity and enter the numeric figure.
Total Cost of Turnover
The total is shown at the bottom of the spreadsheet. To reset all the values to default for a new calculation from scratch, click on the Orange Reset Values Button at the far right bottom of the page.