3. Voluntary and Involuntary Turnover
Employees leave an organisation for different reasons, and while many leave voluntarily others sometimes leave involuntarily.
When voluntary turnover happens, it’s usually because an employee goes to work for another company and has left willingly. On the other hand, when involuntary turnover happens it means that it wasn’t the employee’s choice to leave and that they were likely fired due to poor job performance, absenteeism, or otherwise.
You want to keep a close eye on these metrics because high turnover rates can be an indication of poor performers leaving the company – which can be a good thing – or it can mean that top performers are leaving. If this is the case, it could be of detriment to the company, and an issue that needs a well-implemented and immediate solution.
How to measure:
As you would with your top talent turnover rate, to calculate your voluntary and involuntary turnover rates, you can divide the total number of those who left in a certain period (either voluntarily or involuntarily) by the average number of employees in that period. You’ll then multiply that total by one hundred, and the number you’re left with will be your monthly turnover percentage.
You can alter this equation to fit various the various timeframes you’re looking to focus on, and then compare with industry-standard turnover rates.
Top tip: Keep in mind that turnover rates are related to why employees leave, and retention rates are related to why they stay. While these metrics go hand in hand, it’s key to remember that they are still separate from one another and ultimately measure different things.
4. New Employee Attrition Rate
New employees are typically the most eager to prove themselves worthy of their new positions, so they’ll want to go that extra mile for their business to be successful in their roles.
However, as time goes on and probationary periods come to an end, new hires will be used to their new working environment and can usually tell whether it’s a fit for them and if they’ll want to stay with the company long-term.
If your organisation is seeing a high turnover rate in its newly acquired talent, then it’s worth taking a closer look to understand why they’re leaving so soon.
How to measure:
Like turnover rates, new employee attrition rates can be calculated by multiplying the number of new employees who have left by your total number of employees. Multiplying the result by one hundred will give you the attrition rate you’re looking for. It’s best to calculate this metric weekly so that you can use it as a moving average rather than calculating it once a year.
Keep in mind that it’s also worth it to check in with new hires and their level of satisfaction on a frequent basis. Applying employee engagement measures to combat any potential issues early on will prove useful in retaining new employees for the long haul.