understanding employee turnover
DESCRIPTION
In this webinar you will develop an understanding of how to calculate employee turnover, as well as learn why employee turnover is an important metric in managing your employees. We will cover how to develop and implement employee retention strategies in order to protect you from high turn over costs.TRANSCRIPT
- 1. UnderstandingEmployeeTurnoverLauraMoody,SPHRG&APartners
2. Beforewegetstarted IamnotanaDorney Thisisnotlegaladvice,norshouldthepresentaGonbesubsGtutedforexperiencedlegalcounsel 3. WhattoExpect Understandingemployeeturnover Calculateemployeeturnover StrategiesforemployeeretenGon 4. EmployeeTurnover-DefiniGon Employeeturnoveristhenumberorpercentageofemployeeswholeaveacompanyandarereplacedbynewemployees 5. EndofEmployment EmployeesleaveanorganizaGonformanyreasons,including: ResignaGon ReGrement Layoff Dismissal Leaveofabsence Death 6. TurnoverVoluntary&Involuntary VoluntaryWhenanemployeechoosestoleavethecompany InvoluntaryWhenthedecisionforanemployeetoleaveismadebythecompanyandnottheemployee 7. WhyisTurnoverImportanttoMeasure?Turnovercanindicate: EmployeesaGsfacGonwithintheorganizaGon EffecGvenessoftherecruiGngprocess InsightintohowwellmanagersareinteracGngwithemployees OrganizaGonalculture 8. WhatisEmployeeTurnover? TurnoverisnormallycalculatedusingaformulathattracksthenumberofseparaGonsandthetotalnumberofemployeespermeasurementperiod 9. EmployeeTurnover-CalculaGonTurnoverRate=#ofSeparaGonsX100Average#ofemployees 10. Turnover-Example#1 Forexample,acompanyhas98employeesatthestartoftheyearand102employeesattheendoftheyear.Duringtheyear,8employeesquitand6arelaidoffVoluntaryTurnover:8.0%=8X100(98+102)/2InvoluntaryTurnover:6.0%=6X100(98+102)/2TotalTurnover:14.0%=14X100(98+102)/2 11. Turnover-Example#2 Forexample,acompanyhas100employeesand17employeesquit.Assume5employeesleaveinFebruary,3leaveinJune,4leaveinAugustand5employeesleaveinNovemberMonthlyturnover:January0.0%May0.0%September0.0%February5.0%June3.0%October0.0%March0.0%July0.0%November5.0%April0.0%August4.0%December0.0%Annualturnover:17.0%=17X100100 12. NewEmployeeTurnover-Example Forexample,acompanyhas30employeeswholeaveduringthemeasurementperiodand12ofthemhadbeenwiththecompanyforlessthanoneyearEmployeeswithlessthan1yearX100Totalemployeeswhoterminated40.0%=12X10030 13. WhatistheCosttotheCompany? Turnoveriscostly,disrupGveandimpactsthemoraleoftheremainingemployees 14. TurnoverCostas%ofAnnualBaseSalaryPosi/on%ofAnnualSalaryEntryLevelNon-skilledWorker3050%Service/ProducGonWorker4070%SkilledHourly75100%Clerical/AdministraGve5080%Professional75125%Technical100150%Supervisor100150%Source:TaleoResearchWhitePaperProfitableTalentManagement 15. CostofTurnover SeparaGoncosts Replacementcosts ProducGvitylosses 16. SeparaGonCosts Severancepay BenefitsconGnuaGon Impactonunemploymentinsurance Exitinterviews AdministraGonforrecordkeeping,payroll,andbenefits Investmentinemployeefortraininganddevelopment 17. ReplacementCosts AdverGsing RecruiGng Interviewing Backgroundchecks/DrugtesGng OrientaGon Training 18. ProducGvityLosses Temporarylabor Replacementtraining LostproducGvity LostexperGse Lostrevenue 19. CombaGngTurnover 20. VariablesLeadingtoTurnover Whydoemployeesleaveorsaytheywouldleave? Lackofopportunityandcareerdevelopment CompensaGon Benefits Managementstyle WorkingcondiGons OthervariablesaffecGngjobsaGsfacGon 21. WaystoLearnWhyEmployeesareLeaving Askcurrentemployees Employeeaotudesurveys Focusgroups Structuredinterviews Informalfeedback Terminatedemployees-Exitinterviews 22. EmployeeRetenGon-DefiniGon EmployeeRetenGonistheabilitytoretaintalentedemployeesintheorganizaGon 23. EmployeeRetenGonStrategies GrowthandpotenGalopportuniGes EnsureyouareofferingacompeGGvecompensaGonandrewardspackage Fosteralearningenvironment Engageyouremployees Promotediversity 24. EmployeeRetenGonStrategiesContd ImplementrecogniGonand/orrewardprogramsatalllevelsoftheorganizaGon Ensurethattheperformancemanagementsystemisworking Havefunatwork 25. EmployeeRetenGonPlan Understandemployeeturnover Decidehowtoproceed ImplementaGon EvaluaGon 26. Summary Measuringandtrackingturnoverisvaluable ReducingthecostofturnoverthroughemployeeretenGonstrategiesisessenGal 27. QUESTIONS?G&[email protected](800)253-8562*This webinar has been recorded and will be posted on the G&A website by FridayHRCICer/fica/onCredits:"Thiswebinarhasbeenpre-cerGfiedfor1hourofgeneralrecerGficaGoncredittowardPHR,SPHRandGPHRrecerGficaGonthroughtheHRCerGficaGonInsGtute.Wewillsendoutaconfirma/one-mailtoallthosethatareconfirmedasaBendedwiththeprogramIDcodetonoteonyourHRCIrecer/fica/onapplica/onform.TheuseofthissealisnotanendorsementbytheHRCerGficaGonInsGtuteofthequalityoftheprogram.ItmeansthatthisprogramhasmettheHRCerGficaGonInsGtute'scriteriatobepre-approvedforrecerGficaGoncredit."