Empolyee Turnover and Absenteeism
In human resources context, turnover or staff turnover or labour turnover is the rate at which an employer gains and loses employees. Simple ways to describe it are "how long employees tend to stay" or "the rate of traffic through the revolving door". Turnover is measured for individual companies and for their industry as a whole. If an employer is said to have a high turnover relative to its competitors, it means that employees of that company have a shorter average tenure than those of other companies in the same industry. High turnover may be harmful to a company 's productivity if skilled workers are often leaving and the worker population contains a high percentage of novice workers.
In the United States, the average total non-farm seasonally adjusted monthly turnover rate was 3.3% for the period from December 2000 to November 2008.[1] However rates vary widely when compared over different periods of time or different job sectors. For example, during the period 2001-2006, the annual turnover rate for all industry sectors averaged 39.6% before seasonal adjustments,[2] during the same period the Leisure and Hospitality sector experienced an average annual rate of 74.6%.[3]
Contents [hide]
1 Costs
2 Internal versus external
3 Skilled vs. unskilled employees
4 Voluntary versus involuntary
5 Causes of high or low turnover
5.1 Investments
6 How to prevent turnover
7 Calculation
8 Models
9 References
10 Further reading
10.1 Historical interest
[edit]Costs
When accounting for the costs (both real costs, such as time taken to select and recruit a replacement, and also opportunity costs, such as lost productivity), the cost of employee turnover to for-profit organizations has been estimated to be up to 150% of the employees ' remuneration package.[4] There are both direct and indirect costs. Direct costs relate to the leaving costs, replacement costs and transitions costs, and indirect costs relate to the loss of production, reduced performance
In the United States, the average total non-farm seasonally adjusted monthly turnover rate was 3.3% for the period from December 2000 to November 2008.[1] However rates vary widely when compared over different periods of time or different job sectors. For example, during the period 2001-2006, the annual turnover rate for all industry sectors averaged 39.6% before seasonal adjustments,[2] during the same period the Leisure and Hospitality sector experienced an average annual rate of 74.6%.[3]
Contents [hide]
1 Costs
2 Internal versus external
3 Skilled vs. unskilled employees
4 Voluntary versus involuntary
5 Causes of high or low turnover
5.1 Investments
6 How to prevent turnover
7 Calculation
8 Models
9 References
10 Further reading
10.1 Historical interest
[edit]Costs
When accounting for the costs (both real costs, such as time taken to select and recruit a replacement, and also opportunity costs, such as lost productivity), the cost of employee turnover to for-profit organizations has been estimated to be up to 150% of the employees ' remuneration package.[4] There are both direct and indirect costs. Direct costs relate to the leaving costs, replacement costs and transitions costs, and indirect costs relate to the loss of production, reduced performance
References: ^ "Job Openings and Labor Turnover Survey". Bureau of Labor Statistics. 2008. Retrieved 2009-01-21. ^ Schlesinger, Leonard A.; James L. Heskett (1991-04-15). "Breaking the Cycle of Failure in Services". MIT Sloan Management Review 33 (3): 17–28. Retrieved 2009-01-21. ^ Williams ACdeC, Potts HWW (2010). Group membership and staff turnover affect outcomes in group CBT for persistent pain. Pain, 148(3), 481-6 ^ Ruby, Allen M ^ Hackman, J. Richard; Greg R. Oldham (August 1976). "Motivation through the design of work: test of a theory". Organizational Behavior and Human Performance 16 (2): 250–279. doi:10.1016/0030-5073(76)90016-7. ^ Thomas D Narcissism: Behind the Mask (2010) ^ Tett, Robert P; John P ^ a b c Employee Pride Goes Wide. (2005, February 2). Graphic Arts Monthly, Retrieved February 23, 2009, from Academic Search Premier database. ^ Costello, D. (2006, December). Leveraging the Employee Life Cycle. CRM Magazine, 10(12), 48-48. Retrieved February 23, 2009, from Academic Search Premier database. ^ a b c d e f Testa, B. (2008, September 22). Early Engagement, Long Relationship?. Workforce Management, 87(15), 27-31. Retrieved February 23, 2009, from Academic Search Premier database. ^ Skabelund, J. (2008, May). I just work here. American Fitness, 26(3), 42-42. Retrieved February 23, 2009, from Academic Search Premier database.