Are you losing good employees left and right? No business wants a high employee turnover rate, but calculating it can be tricky.
Determining why can be difficult, but an important step is calculating your employee turnover rate. By knowing how many employees are leaving your company and comparing it to how many total employees you have, you can see whether you have a problem with employee turnover.
We put together this straightforward guide on how to calculate employee turnover rates. Use this guide on how to calculate employee turnover rate.
Reduce Your Turnover Rate
There are a number of reasons why you might want to reduce your employee turnover rate, such as decreasing the cost of training new employees, increasing employee morale, and improving customer service.
You can also reduce your turnover rate by improving job satisfaction through offering competitive pay, good benefits, and a positive work environment. Improve retention by providing employees with opportunities for career growth and development.
Check Time Cards
If you have a high turnover rate, it could be because employees are leaving for better opportunities. It could also be because they are not a good fit for the organization. Therefore, looking at other factors, such as employee satisfaction, is important when determining the root cause of turnover.
Checking time cards through different tools, such as using time clock software, will allow you to see if you have a healthy employee turnover rate. To calculate the employee turnover rate, you must obtain a copy of the employee’s time cards. Next, calculate the total number of hours worked by the employee during the specified time.
To ensure that employees are not working excessive hours, compare the turnover rate to the average hours worked by employees. If the turnover rate is higher than the average hours worked, employees may be working excessive hours, so checking time cards will be very helpful. By ensuring that employees are not working excessive hours, you can create a healthier work-life balance that will make employees more likely to stay with your company.
How To Calculate Employee Turnover Rate
You must first define employee turnover to have a proper calculation. It is the number of employees who leave an organization and it is divided by the average number of employees a company has.
It is usually based on the number of employees that are working full-time. To do the calculation, divide the number of employees who left the company during a specific time by the average number of employees during that period.
You will then need to multiply the result by 100 to get the turnover rate as a percentage. For example, if 20 employees left a company that had an average of 100 employees during a year, the turnover rate would be 20%.
Increase Your Employee Retention
Now you have a good idea of how to calculate the employee turnover rate. Calculating the employee turnover rate can greatly help retention and recruiting new employees!
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