Personnel turnover: researching and documenting

The turnover rate is one of the main indicators in personnel management in an organization.
Therefore, any company that seeks to provide the organization with stable, qualified personnel resorts to a formula for calculating the turnover rate. Staff turnover rate is a value that reflects the frequency of the process of hiring and firing staff. In other words, it shows how long an employee has been working in the organization.

What is staff turnover

What should be understood by staff turnover? This is a phenomenon that reflects the state of affairs in the company: working conditions, reward system, psychological climate, management styles and much more. There are different types of fluidity.

• active. A person leaves on his own because he is not satisfied with the content of the job, lack of career growth, working conditions in the workplace, the relationship with the manager or the team does not work out, etc.;
• passive. The employee does not leave, but his manager dreams of getting rid of him, since he cannot cope with the job, does not fit into the corporate culture, is often sick, etc.;
• intra-organizational. If an employee is transferred to another department, this is also a loss for his previous manager;
• external. Employees are leaving.

Thus, the reasons for employee departure can be generated by two parties: both the employee himself and the employing organization. And then staff turnover can be defined as a process of labor movement caused by employee dissatisfaction with the workplace or the organization’s dissatisfaction with a specific employee.

Indirect factors that reduce the level of turnover

There are also reasons that, to one degree or another, influence an employee’s decision to stay in the organization. One of them is place of residence - the less time a person spends coming to his workplace, the lower the risk that he will decide to quit.

The length of time an employee has held a position at a company also matters. According to research, those who have worked for less than three years are most likely to leave. For others, the decision to quit is much more difficult.

Conducted studies have proven that the higher the level of qualifications of an employee, the less often he has the desire to leave his position.

How is the staff turnover rate calculated: calculation formula

How to calculate staff turnover? In the practice of personnel management, various formulas are used to calculate the indicator we need.

Some methods calculate the ratio of the number of dismissed employees who left the organization during the reporting period to the average number of employees for the same period.

The peculiarity of this methodology is that not all employees are counted among those dismissed, but only those who quit of their own free will or on the initiative of the employer:

• for absenteeism;
• for violation of safety regulations;
• for leaving work without permission;
• due to unsatisfactory certification results, etc.

Other experts consider this method ambiguous, since it does not answer the question: what to do if formally a person quit of his own free will, but the real reason is different?

There is another technique that allows you to calculate the staff turnover rate; The formula for calculating it is as follows:

Where:

• Chuvol - the number of people who left the organization during the reporting period;
• SSCh - average number for the same period.

In any case, further analysis of the reasons for dismissal is necessary to obtain a clearer and more complete picture.

How to find the best way to motivate staff?

As you can see, there are a lot of ways to motivate employees at an enterprise. But it is important to understand which of them will be effective in each specific case, so it is necessary to carefully study the changes that have occurred after the implementation of a particular method, as well as analyze the personnel management system as a whole.

Analyzing methods of stimulating employees helps to understand which types of motivation really produce results and which should be abandoned. Researching methods to motivate employees is a rather labor-intensive process. But this is not a reason to abandon it. On the contrary, experts advise conducting such studies as often as possible.

Surveys, testing, and special techniques are used as research tools, the purpose of which is to identify the hidden motivation of the employee. But at the same time, it is necessary to take into account that the respondent in some cases may not be fully aware of exactly which motivational factors influence him the most.

And the answers to the questions will not always be truthful, since the so-called social desirability factor is triggered. Therefore, it makes sense to conduct a projective study simultaneously with surveys and testing, which will provide a more complete picture.

Where and what is it used for?

This indicator is used in personnel services, personnel management services, labor and wage organization, financial and economic (depending on the organizational structure of the enterprise) as an indicator showing the level and nature of the movement of labor.

Like any indicator, this indicator informs us whether there are problems at the moment or whether everything is going well. Normal values ​​mean the values ​​that have developed in practice for various categories of personnel, sectors of the national economy and stages of development of the organization.

Human capital management specialists should keep constant records of layoffs by personnel category and by company division, examining not only the quantitative but also the qualitative characteristics of the phenomenon, that is, analyzing the reasons for staff turnover.

What measures promote professionalism, increase efficiency, and reduce turnover?

First of all, the employee must be satisfied with his salary - he must be paid in accordance with his qualifications. Otherwise, he will feel undervalued and will leave for another club as soon as possible.

Some directors of fitness clubs send their employees to various seminars and conventions at their own expense, thereby increasing their level of qualifications and at the same time getting them interested.

The location of clients depends not only on the professionalism of the trainer, but also on his personal qualities. A friendly employee will always be held in high esteem. Therefore, you can introduce a reward system, depending on the number of clients a particular trainer has.

It is very important to take into account the personal preferences of employees and organize the work process in accordance with them. Such actions will show the employee that he is valuable to the organization and his interests are taken into account.

Standard values ​​of staff turnover rate

In practice, it has been established that staff turnover within 5% is normal. It indicates a renewal of human resources, which has a beneficial effect on the company’s activities: employees retire, move to a new place of residence, and those who work ineffectively leave.

But if the staff turnover rate exceeds 50%, then this is an extremely negative phenomenon. Such employee turnover interferes with the normal functioning of the organization and leads to inefficient use of resources. New employees need to be constantly trained, they need to pay for the services of recruitment agencies, and conduct interviews with applicants.

The normal turnover rate for an individual company can vary significantly depending on:

• type of company activity;
• the area where the enterprise operates;
• working conditions;
• other factors.

It is advisable for each company to determine its optimal level of personnel turnover from a cost point of view and take it as a standard. To this end, you need to track the development of the phenomenon over time, taking data, for example, over the last five years, and then decide whether you will reduce the indicator or be satisfied with the existing level.

Analysis of staff turnover allows us to identify the reasons that cause actual values ​​to exceed normal values. After this, you can develop an action plan to correct the situation.

Reasons for staff turnover

Staff turnover can be caused by a variety of factors. Let's look at the most common ones:

1. Type of company activity. For example, trade organizations always experience higher staff turnover than manufacturing companies.
2. Location of the organization. In large cities it is easier to find alternative employment options. In small localities, applicants do not have as many choices, so for similar positions the turnover rate will be significantly lower.
3. An overly young or, conversely, older workforce: young people are more likely to change jobs frequently, while workers of retirement age may decide to end their working career at any time. Middle-aged employees are more interested in maintaining a permanent job.
4. Inconsistency of wage levels with market realities. Low wages are one of the main reasons why qualified employees change jobs. A clear understanding of what market salary levels are for each job position is necessary.
5. Lack of prospects for development and growth. Most promising employees strive for professional development and career growth. And if the current employer cannot provide the necessary growth, the employee will be forced to look for professional development opportunities outside.
6. Inconvenient work schedule or poor working conditions.
7. Bad climate in the team. This is a subjective factor, but sometimes excessive claims by managers towards subordinates, difficult relationships with colleagues, and difficulties in adapting new employees can also lead to excessive turnover.

How to motivate staff?

Lack of employee motivation is one of the main reasons for dismissal. The management of both a large manufacturing enterprise and a fitness club should pay attention to this indicator. A motivation system is a whole set of different methods that will help increase the interest of an employee in an organization.

First of all, it should be noted that there are two ways to stimulate staff - material and intangible. As for material motivation, a system of monetary rewards is used, as well as the presentation of various gifts to the best employees. An example of such a gift is a trip paid for by management or a subscription to a fitness club.

Prizes and bonuses in cash equivalent, which are issued upon achieving certain successes, will be a good incentive to increase productivity. The size of the bonus may be fixed or may depend on a specific result.

Salary is one of the most powerful motivation tools. If its level is quite low, then no additional rewards will keep employees from leaving the organization. This must be taken care of first if retaining qualified employees is important to management.

What can be done to stabilize the turnover rate

Constant monitoring of personnel movement, calculation of the turnover rate and analysis of the reasons for its change must be accompanied by real actions designed to maintain personnel turnover at a normal level. To prevent uncontrolled escape of employees, the following actions can be taken:

1. Establish competitive wages for employees.
2. Control over the change of generations of employees. Ensuring the attraction of promising young specialists, organizing their training by the older generation, retaining qualified specialists of the middle generation.
3. Provide opportunities for career and professional growth: training courses, career advancement, possible with proper organization of generational change.
4. Set a more favorable work schedule. For example, if all employees prefer to eat lunch at work, shortening the traditional one-hour lunch break to 30 minutes may be viewed favorably by employees as they will finish work earlier.
5. If an organization operates in places that are not very attractive to promising employees, it is possible to provide them with more favorable conditions: for example, reimbursement of housing rental costs.
6. Organize proper personnel work, which will allow you to cut off employee runners at the interview stage, before signing an employment contract.

What does such research provide?

Such a study of staff motivation allows us to draw conclusions about how effective the organization's current stimulation system is. If the methods used do not bring significant results, it is necessary to abandon them and find others.

By selecting the most effective methods, management will be able to organize work much more efficiently, as well as form the necessary labor reserve and select more efficient and qualified personnel and, of course, reduce the level of turnover.

Based on such research, it will be possible to select effective methods of motivation for a specific person. For example, for one, career growth and self-realization are important, while another can be interested by challenging him, setting more and more complex tasks for him.

You can also understand how much the environment and working conditions influence the motivation of staff, which factors are distracting, and which, on the contrary, have a positive effect. As a result, a properly selected system of motivation methods will increase labor efficiency and also reduce the company’s costs associated with the dismissal of employees.

Example of calculation and analysis of staff turnover rate

LLC "Company" is a manufacturing enterprise. The average headcount of the organization has been stable over recent years and amounts to 100 people annually. When calculating the turnover rate, the analytical department takes into account all the reasons for staff dismissal. So, over the past five years the following people quit their jobs:

For each year, we will calculate the staff turnover rate and monitor its dynamics. We use the same formula:

Using this formula, we make a similar calculation of the turnover rate for each year:

From the calculation results it can be seen that over the past five years the company’s staff turnover rate has increased significantly. Moreover, for the last two years it has exceeded 5%. The staff turnover rate has not yet reached critical values, but is already above normal. In this regard, the company’s management needs to work to normalize the working climate in the team, perhaps review working conditions or work schedules. It is also necessary to analyze the reasons for the increase in the number of dismissals for absenteeism. This may indicate errors by HR services when selecting candidates for vacant positions.