I assume most, if not all, of us here have encountered a certain key perfomance indicator called employee turnover (or staff turnover). I have seen it a lot and didn't haven't really given much of a thought until it somehow ended up in one of the excel files I am administering. And now I must devise the formula to compute for it.
First of all, what is the correct way of computing it? Is it just flat out the # of employees who resigned/fired divided by average # of employees? If this is so, then it is very possible to have more 100% turnover.
If there are 3 positions in a company, A, B, C and position A has been replaced 3 times in a year, what is the turnover? And will it be different if all 3 position has been replaced but just once?
What if the company is in a liquidation phase, say at the start of the year 2006 it has 300 staffs, then by end of June 2006 it had none (50 staffs resigned per month). What is the annual staff turnover by end of 2006? And what is the YTD staff turnover in each of the months?
I have asked several people in the company I worked in and they have differing opinions.
Would like to hear from you guys.
Thanks
First of all, what is the correct way of computing it? Is it just flat out the # of employees who resigned/fired divided by average # of employees? If this is so, then it is very possible to have more 100% turnover.
If there are 3 positions in a company, A, B, C and position A has been replaced 3 times in a year, what is the turnover? And will it be different if all 3 position has been replaced but just once?
What if the company is in a liquidation phase, say at the start of the year 2006 it has 300 staffs, then by end of June 2006 it had none (50 staffs resigned per month). What is the annual staff turnover by end of 2006? And what is the YTD staff turnover in each of the months?
I have asked several people in the company I worked in and they have differing opinions.
Would like to hear from you guys.
Thanks