Admission turnover rate: formula. Recruitment turnover ratio

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

What's the difference between a Soviet-style HR manager and a human resource manager? The personnel officer is engaged in office work - hiring, dismissal, maternity leave, paying salaries, etc., in the personnel department there are oceans of papers. The HR manager deals with resource management. He collects reliable statistics, analyzes them, plans, calculates risks, and proposes changes. He is involved in business process management, in advanced companies he is called a business partner.

Frame Rates: The Big Four

The basis of modern HR management is statistics with coefficient calculation, graphing, analysis and interpretation of changes in numbers by months, quarters, years. The recruitment turnover ratio is one of the basic components of personnel analysis. It is part of the "big four" coefficients that capture changes in the number and quality of personnel. These values are:

1. Recruitment turnover rate - the share of hired employees from the total numberemployees in the organization as a percentage.
2. Turnover on dismissal - the share of dismissed employees from the total number.
3. Full turnover - the share of hires plus dismissals of the total number.
4. Staff turnover (not to be confused with dismissal turnover) - the share of those dismissed for violations of discipline and at their own request from the total number of employees.

This family of indicators perfectly describes the most important process - the movement of the labor force: the change in the number of employees as a result of personnel movements (hirings, dismissals or transfers).

Big Four: clarifications and formulas

Personnel statistics is distinguished by a considerable number of nuances and small, but actually important details. For example, the average headcount for any period is calculated quite cumbersomely: it is the sum of the number of employees for each day of the period, divided by the number of these days. Compliance with this kind of arithmetic is necessary and justified: daily staff changes are much more intense than it might seem. It's not just hiring and layoffs, it's transfers, decrees, training, restructurings and much more - everything that makes staff turnover an ongoing process that needs to be monitored in the most careful way.

Formulation of turnover rate for acceptance:

Number of hired employees for the period / Average payroll for the period × 100 %

Rules for the analysis of the turnover ratio for hiring employees

When analyzing any personnel statistics, you must follow the most important rules:

1. Analyze only relative measures (i.e. odds, no absolute numbers).
2. Only consider indicators in conjunction with others and never alone.
3. Review indicators only in dynamics (as it was before) and in comparison with statistics from other related divisions or companies.

Calculating one figure using the formula for the turnover coefficient for acceptance, entering it into the table and calming down on this is not our option. Who exactly joined the company? A pack of movers to a new warehouse? Or did you manage to lure two TOPs to the strategic planning department, who were hunted for six months? How many people were recruited, how many were released? Voluntarily or kicked out? How many valuable employees were not retained? And why do logisticians leave and come all the time?

17%: rejoice or tear your hair out?

For example, you are the new head of the company. The Human Resources Director proudly reported to you that your company's recruitment turnover rate was 17% in the last quarter. Do you rejoice or tear your hair on your head? In principle, both options are suitable, which one to choose?

First, demand the same coefficient, but on dismissal. At the same time, full turnover and staff turnover - the same big four - figures for the movement of personnel. Together with them, request the same indicators for the same quarter, but in the last and the year before last. With such data, one can speculate. By the way, if the directorif she delayed the required figures for personnel or simply did not collect such statistics, fire her - this will be the right decision. The time of such personnel has passed. Now it's time to deal with 17% - is it a lot or a little?

HR high-flying: thinking and reasoning

Important! There is no standard rate of turnover for acceptance. It is possible to estimate the data at 17% only when analyzing the entire family of frame movement indicators. The only figure that you can focus on is the turnover of personnel (the proportion of those dismissed of their own free will and for violations of the average headcount). This is a very approximate and average figure of 5%. The staff turnover or "HR's nightmare" also depends on many factors and, above all, on who exactly quit. Leaders of a large caliber leave least of all, most often - drivers, loaders, assistants, sellers. For such, the turnover rate can be 40%. Let's go:

1. Given:

Turnover on admission 17%, turnover on dismissal 3%, turnover 2%.

Diagnosis: this company is expanding, there is an intensive recruitment of new employees, some people have been transferred to other positions (and this is natural in a growing company), almost no one quits (also natural), even beginners who made a mistake with the choice of a company do not flow within the trial period: the recruitment department works well, they select the right candidates for positions, everyone is happy. An excellent personnel picture that pleases the heart of an understanding leader.

2. Given:

Reception turnover17%, layoff turnover 32%, turnover 23%

Diagnosis: is a completely different situation. Apparently, the company is undergoing a difficult restructuring: downsizing (hiring fewer people than firing), changing the structure of departments and subordination, changing positions and functional responsibilities, appraisal of employees with demotion is likely (a very high rate of turnover upon dismissal, higher than the coefficient by acceptance). Not all employees are happy with such changes, people began to leave of their own accord - the turnover increased. More people leave than come. But such a movement is planned, no surprises. The personnel picture is similar to the change of ownership.

3. Given:

Turnover on admission 17%, turnover on dismissal 0%, turnover 26%.

Diagnosis: alarming picture: a lot of people are leaving (26% is too much for the average indicator from TOPs to movers). No one is moved in positions, no one leaves to give birth or study. Newcomers are hired, but less than people are lost. Is it headed for bankruptcy? Severe crisis? By the way, if the turnover rate for hiring workers was 26%, that is, the same as for layoffs, then the degree of anxiety would be lower: such turnovers of employees are often observed in retail trade companies (classic turnover of salesmen).

CV

The Big Four State Movement Indicators, along with other staffing ratios, is a fascinating matrix for anyone who loves and knows how to think. It's gorgeous andobjective material for making strategic decisions on human resources and business development. Knowledge and understanding of such indicators is a necessary and extremely relevant skill for any leader thinking about tomorrow.