Many people leave jobs for reasons related to the workplace, including job dissatisfaction and problems with co-workers or management. They may also be seeking better wages, benefits or work flexibility. Turnover is further influenced by the condition of the economy and job market.
Your turnover rate will indicate if there are problems in retaining staff and how bad the problems are. It is a more accurate estimate of the rate at which people, who need to be replaced, leave and therefore a useful benchmark for your employers. To determine whether turnover is too high, businesses can compare their turnover rates to industry standards.
Divide the number of employee departures from your business over the last five years by the number of staff members employed over the last five years.
Multiply that number by 100. The optimal turnover rate that maximises productivity is about 22% per annum.
If your turnover rate is high, consider surveying current staff in all areas of the business by developing a job satisfaction survey and graphing the results. Additionally take the opportunity to have staff complete an exit interview before they leave as this will show you where you can improve your business on the inside with the aim of then improving your business and your turnover rate.
Each time a worker leaves your business, you will incur replacement costs. Improving your turnover rate will decrease your overheads and ensure your have productive and satisfied staff who contribute to your bottom line.
At I&IBS we are often called upon by local businesses as an external source to undertake staff interviews and compile the results with the aim of identifying opportunity for internal business improvement and efficiency. Please contact us to discuss your requirements should you feel there is a need to better understand the dyamics of your team and improve your workplace. |
