Want to track your employee retention? Learn how to calculate your company’s staff turnover rate.
You can calculate your employee turnover rate by looking at the average number of workers who exit your business during a specific time period and are replaced by new staff.
Your business should monitor and track its employee turnover to gauge how appealing your company is to employees. It can also help you improve areas that may be causing workers to leave your company.
Your employee turnover rate helps you evaluate your risk of an employee leaving and recognize opportunities for retention when you hire new employees.
Employee turnover costs money.
A 2012 study by the Center for American Progress shows that it costs a business roughly one-fifth of an employee’s salary to replace that employee once they’re gone.
These costs show up in obvious and subtle ways.
They show up in the hard costs of hiring a new person (what’s involved with advertising, interviewing and screening). They surface in the training and management time spent onboarding a new employee. More subtly, but no less significantly, these costs also show up in the time it takes a new hire to reach a predecessor’s productivity.
The more turnover a company has, the more these costs eat away at the bottom line. While there’s no way to eliminate employee turnover completely, here are five strategies that companies can implement to make it the exception and not the rule: