Control staff turnover

Regular monitoring of staff turnover can show you why it is happening and enable you to control and forecast it.

Staff turnover calculation

You should measure your current staff turnover in percentage terms, following this simple two-step calculation:

1. Add together the number of staff working at the beginning of the time period and the number of staff working at the end of the period and divide by two. This will give you your average number of staff working within this time period - you will need this number for the next stage.
2. Work out the number of employees leaving over the time period, multiply by 100, and then divide by the average number of people working in that same period.

This staff turnover calculation formula will give you a percentage for your business, known as the separation rate that you can compare over time. You can also use this indicator to see how your business compares with staff turnover averages in your business industry for benchmarking purposes.

Employee stability index

To measure how experienced employees are being retained, you can calculate the employee stability index - number of workers with one year's service or more, divided by the number of workers with less than 12 months' service, multiplied by 100 = stability index percentage rate.

Employee turnover patterns

The characteristic pattern of employee turnover is high for new starters, then decreases the longer an employee works for you. This pattern will vary in any single organisation and can be shown graphically. It is known as the survival curve and can be extremely helpful in understanding the nature of employee turnover, but must always be used in conjunction with the employee turnover rate.

To create the survival curve, you must plot the number of leavers against the period for which they were working.

Examine the causes of staff turnover

To make a meaningful assessment of your current business position, try to identify the causes of employee turnover:

Consult regularly with staff

It is often effective to have consultations with individuals or groups of staff. Engaging with staff will help root out any underlying problems and causes of dissatisfaction within your business.

Exit interviews

Exit interviews are carried out by many businesses, can reveal common reasons why staff leave your employment and highlight any emerging patterns. See when an employee resigns.

Staff surveys

Regular staff surveys can often indicate general satisfaction levels, but remember to address any issues arising so that they know you take their views seriously. See staff feedback, ideas and forums.

Evaluate recruitment and selection processes

Analyse your recruitment and selection procedures to see if you can identify expectations or potential problems at an early stage. Alternatively, you may need to make the business' expectations clearer at the recruitment stage. See taking on staff.