Staff turnover can be one of the most difficult things for businesses to predict, but it is one of the most important and it can have a significant effect on a company’s bottom line.

Finding and retaining the best talent is important for businesses of all sizes but sometimes events outside your control can influence how many employees are going to leave and if and how you replace them.

The economy is clearly the biggest driver in employment and it will dictate the staffing needs of most companies. Often the indications and industry predications are clear to see but not always.

An international disaster can quickly affect business; a food scare can see demand for a product drop off immensely. This will have a swift effect on staffing levels at supplier companies. Not all firms have the financial contingency to withstand unpredictable market dips.

However, in many instances in a fairly stable market, staff turnover is reasonably predictable. And knowing where future gaps in your staffing levels may occur allows you to book and use temporary workers through a managed service provider to plug gaps as and when necessary, and to budget for this accordingly.

In the first instance, analysis of the last few years of employee turnover will provide a good position to forecast likely cover you will need on an ongoing basis.

To find your monthly staff turnover divide the number of people who have left by your total number of employees, excluding any new appointments. Multiply the number you’re left with by 100 to leave you with your staff turnover rate. So if eight members of staff have left and you have a total of 200 employees, that leaves a figure of 0.04. Multiply this by 100 to give you 4. Your monthly turnover is 4%.

To find out how many staff are leaving in the first year, divide the number of first year leavers by the number of total leavers and multiply by 100. This will leave you with the percentage of people leaving before their first year is up.

In addition, exit interviews with staff who are leaving voluntarily are a good way to log information and understand why employees are going.

Arming yourself with basic information like this, and with contingency plans in place for unexpected staff reduction, will put you in a stronger position regarding both permanent staffing and temporary worker requirements.

By working with a neutral vendor like GRI, organisations can benefit from one outsourced solution to manage their entire temporary labour process, one that gives visibility of temporary and permanent churn and delivers the ideal mix between temp and perm staff.

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