Every so often I decide that I need to get my diet under control. The first thing I do is start recording what I eat in a food diary. Why? Because our goals are more achievable when we measure the steps that get us there. Over the next month or so let’s look at some ways we can measure our HR and Payroll performance.
One standard measurement in Human Resources is TURNOVER. This is where you divide the number of terminating employees for the period by the total number of employees in the organization. But this number alone might not tell the whole story. Here are some additional ways to look at turnover:
EARLY TURNOVER: This looks at the number of recruits leaving in their first year divided by the number of recruits hired in the period.
REGRETTED LOSS: Regrettable turnover is when an employee’s departure from a company has a negative impact on the team or organization. The measurement is the number of employees who left the company but who the company had planned to retain divided by the total number of terminations.
NON-REGRETTABLE TERMINATION RATE: Employees who left the company, but their leaving had no appreciable effect on the company.
CONTROLLABLE SEPARATION RATE: Employees who left for a reason that the company might have been able to address if they had been aware of it.
UNCONTROLLABLE SEPARATION RATE: Employees who left for a reason that the company could not possibly control, even if they had been aware. This measurement would include death, military service, plant closure, etc.
Some of these statistics are readily available. Others may require you to review the way you currently classify the terminations in your HR System. Once you start tracking them, however, you will be able to see where you need to focus your attention.