In our last article, we looked at why you should be tracking employee turnover and how to calculate your turnover rate. (If you missed it, you can check it out here first.)
A few key takeaways from that article:
(Again, you can find the full article here.)
Now that you know the basic steps to calculate your turnover rate, you might also have questions like:
To answer these questions, we can use the information and formulas from part 1 with some adjustments. This is going to be a numbers-heavy post, so be sure to refill your coffee before you dive in!
If you have access to employee data from previous years, you can go back and look at your turnover to see if things are getting better or worse over time. You’ll simply use the same formula we used for annual turnover:
Annual turnover rate = (Separations during the year ÷ Total # of employees at the start of the year) x 100
Imagine that in 2019, you started the year with 410 employees and 60 left over the course of the year. Your turnover rate for 2019 would be (60 ÷ 410) x 100 = 14.6%.
Then in 2020, you started the year with 350 employees and 80 left over the course of the year. Your 2021 turnover rate would be (80 ÷ 350) x 100 = 22.8%. This shows that your employee turnover increased or worsened from 2019 to 2020.
You might also want to compare turnover between one department and another, or between DSPs and office staff. To do that, you’ll need to calculate turnover for each individual department. We’ll slightly tweak the original formula:
Department turnover rate= (Separations in specific department ÷ Total # of employees in that department) x 100
Let’s say you have 75 employees in your community services program at the start of the year. You lose 10 employees from this program throughout the year. (10 ÷ 75) x 100 = 13.3% turnover rate.
You also have 75 employees in your day program at the start of the year, but you lose 15 employees from this program. (15 ÷ 75) x 100 = 20% turnover rate. In other words, your day program has higher turnover than your community services program. Knowing this, you can take a closer look at why this might be the case and what you can do to improve it.
You might also want to calculate your new hire turnover rate. In that case, you’ll divide the number of new hires who leave during a given period by the total number of new hires during that same period.
Usually new hire turnover is defined as employees who leave before one year of employment. However, organizations with high turnover (like those in the disability service industry) might want to look at a shorter ‘new hire’ period like 90 days. The formula for new hire turnover is:
New hire turnover rate = (Number of new hires who leave the organization during the specified time period ÷Total number of new hires during the same time period) x 100
Let’s say that you’ve defined new hire turnover as any employee who leaves within their first 90 days. In the past year, you hired 25 new employees and 12 quit within their first 90 days. Your new hire turnover rate is (12 ÷ 25) x 100 = 48%. This means that nearly half of the people you hired left within their first 90 days! In that case, it might be time to take a closer look at your hiring and training practices and see why this is happening.
Once you know your employee turnover rate, you can also benchmark your performance against others in your industry. Providers often benchmark against others in their state, region, or industry as a whole. To do this, you’ll need to know two things:
1. Your turnover rate
2. The turnover rate for other providers
You can calculate your turnover rate using the formulas from Part 1 of this article. To figure out the turnover rate for other providers, you can either contact those providers directly or look at publicly available data. We recently surveyed IDD providers to find out their turnover rates during the pandemic. Relias has also conducted research on DSP turnover which you can use to benchmark your organization.
Armed with this information, you can make better decisions about how to increase employee retention and improve the overall health of your organization.
Now that you know how to calculate and analyze your employee turnover, don’t keep this information to yourself. Once you have the data, it’s time to bring awareness and make moves. Grab your executives, directors, and managers and identify areas that can be tweaked to address turnover. Remember, changing too much can be ineffective, but something has to change if you want to make an impact on your organization’s turnover.
For more information on how to make your data work for you, download our free ebook, “5 Ways to Become a Data-Driven Organization”.