The payroll system should be set up to provide full information on the number of employees. The employer should keep track of this report for the entire month. The more data is used, the more accurate the turnover calculation will be.
Step 2: Calculate the average number of employees
The next stage involves calculation using the formula:
Average number of employees = sum of total number of employees from each report / number of reports used
Example:
The company reports the indicator three times a month, the total number of people on January 1 is 143, by January 15 - 148, and by the end of the month - 151. So you can apply the formula to each period and divide by the number of reports - three:
(143 + 148 + 151) / 3 = 147.333
So, the average for January is 147,333.
Step 3: Calculate the number of people leaving
The next step is to create a list of employees with the dates of their dismissal from the company for the month. This calculation includes both dismissals initiated by employees and at the request of the employer. However, employees on vacation should not be included in this list.
Example:
Statistics for January:
employment contracts with five employees were not renewed;
the employment contract with one employee was terminated;
two employees were dismissed under the Labor Code;
one employee was sent on unpaid leave;
Two employees went on paid leave.
From this list, only three people need to be included in the number of those who resigned: one who resigned on his own and two who resigned at the initiative of the employer.
Step 4: Divide the number of departures by the average number of employees
The formula will look like this:
Number of resignations / average number of employees
Example:
The company has three quits and an average number of employees of 147,333 per month. Using the formula, we get:
3 / 147.333 = 0.0204
Step 5: Calculate your monthly turnover.
To better navigate the indicators, they need to be evaluated as a percentage. Thus, the resulting number needs to be multiplied by one hundred.
Example based on the value from step 4 and multiplying by 100:
0.0204 x 100 = 2.04%
The resulting staff turnover figure for January was 2.04%.
Step 6: Employee turnover rate per year
Most organization managers want to know the level of employee turnover not only for a month, but also for a year. To determine the annual turnover rate, it is enough to simply sum up the data for each month.
For example, if in April an employer wants to calculate the indicators for the first three months of the year, the formula will be quite simple:
TC for January + TC for February + TC for March
In the same way, you can calculate turnover for the entire annual period:
TC for the year = TC for January + TC for February + TC for March + TC for April +... + TC for December
How to achieve multiple growth in traffic and sales from your website?
Alexey Boyarkin
Dmitry Svistunov
Head of SEO and Development
Read more posts on my personal blog:
I have always been concerned about the issue of moving to a fundamentally new level. So that the indicators would grow not by 2 or 3 times, but by several orders of magnitude. From a thousand visits to ten thousand or from ten thousand to a hundred thousand, if we are talking about a website, for example.
And I know that such leaps are always the result of painstaking work in five areas:
Technical condition of the site.
SEO.
Collection of site semantics.
Creating useful content.
Working on conversion.
And at the same time, every manager needs an whatsapp number australia increase in sales and the number of applications from the site at the moment.
To get this growth, download our step-by-step template for increasing sales from the site:
Download template
Already downloaded
153114
Example of calculating the turnover rate
Let's look at a car wash with tire fitting functionality as an example. As of January 1, 2021, there were eight car wash attendants, one tire fitting specialist, and one administrator working there. It turned out that one car wash attendant left the company, and the second was fired in March for failure to perform his duties. Three car wash specialists were hired to replace them in March.
Example of calculating the turnover rate
Source: shutterstock.com
In April 2021, the manager decided to increase the staff and created a vacancy for one more tire fitter and one administrator. In July, one current tire fitter left of his own accord, and in September, a washer was fired. In October, two washers and one tire fitter were hired. There were no staff changes or reshuffles the rest of the time.
Now you can calculate the indicators based on data for 2021:
January - 10 people;
February - 10 people;
March - 11 people (10-2+3);
April – 12 people (11+2);
May - 13 people;
June - 13 people;
July - 13 people (13-1);
August - 12 people;
September - 12 people (12-1);
October – 13 people (11+3);
November - 14 people;
December - 14 people.
Here, the data for the beginning and end of the month are taken into account, so the average number does not coincide with the current one. Thus, during 2021, at the initiative of employees and management, the company lost four employees. To calculate the staff turnover for this period, you should first determine the average headcount of employees. It will be:
(10 + 10 + 11 + 12 + 13 + 13 + 13 + 12 + 12 + 13 + 14 + 14) / 12 = 12.25 people
Now you need to substitute the required values into the turnover rate formula. The calculation for our case will look like this: