Monitoring Attrition and Turnover:
Losing skilled workers is an unwelcome and high cost event for any organisation. A significant downside of today’s buoyant economy is high employee turnover. A PwC study showed that it is a particular challenge for Australian companies with turnover at 23% in the first 12 months of employment, the worst rate of the 11 developed countries surveyed. A manager’s ability to see ahead is critical. Identifying strengths, weaknesses, improving processes and formulating action plans are important steps to creating a workplace environment where employees wish to stay.
A good picture is worth a thousand words and makes varied bits of information understandable. That’s why organisational charts can be powerful tools for dissecting the landscape of flight risks, terminations and separations. OfficeWork Software’s OrgChart solutions present a clear workforce visual of a department or geographical unit. It can even illuminate metrics for terminations, turnover and tenure.
OrgChart has numerous visualizations for communicating various attrition metrics.
Turnover Ratio
Managers with a high turnover ratio within their span of control are typically a concern for
a company. Turnover Ratio calculates turnover by division, department, manager and job role. Voluntary
separation and involuntary separation are reported separately. Different departments, divisions and managers can be compared to assess effectiveness and overall organisational health. Job roles and functions can be compared to industry standards to assess an organisation’s competitive position.
Terminations and Separations
This metric totals the employees leaving the organisation, unit, division or department.
It’s used to analyze personnel terminations and separations, by total or by type, during a set period to examine
and communicate the impact of workforce turnover.
Tenure
The Tenure metric communicates how long an individual has been employed by an organisation. Tenure can be reported by total length of employment with an organisation or the time occupied by an employee in each position. Tenure metrics can indicate employee satisfaction with the organisation and/or their direct supervisors. They can be compared with industry standards to assess an organisation’s competitive standing in the recruitment process.
Armed with a clear, visual presentation of the data, it quickly becomes apparent on why and from where employees are leaving an organisation. Plans can be put into place to solve short term and long term employee attrition challenges by addressing isolated problem areas or company-wide trends.
