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 ideals, 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’re going to come to rash conclusions quickly. Who knows, they could be right which is exactly why monitoring turnover is so important
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?
Turn a complicated calculation into something straightforward by downloading MyOpportunity’s Staff Turnover Cost Calculator or use the spreadsheet directly on Google Sheets. In minutes, you’ll know exactly how much money your staff turnover is costing you.
How To Calculate Staff Turnover Rate
Let’s take a look at how to calculate staff turnover rate manually.
Step 1 – Determine The Period Of Assessment
Pick the period that you’ll be analyzing. For example, let’s start with the beginning of a month.
Step 2 – Determine The Number Of Employees At The Start Of The Period
Find the number of employees who were employed at the beginning of the period and note it down.
Step 3 – Determine The Number Of Employees At The End Of The Period
Subtract the number of employees left at the end of the period to be left with the number of staff separated.
Step 4 Determine The Average Number of Employees
Add the number of staff employed at the beginning of the period with the number of staff employed at the end of the period and divide your total in two.