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How the hell are you supposed to calculate turnover anyway? And what does it really tell us?
In the latest episode of It’s Not Bragging If You Have Data**, Matt Massucci discussed Hirewell’s turnover in 2021: only 6% in 2021.
Compared to the staffing industry average of 25% (2019 number.)
And half went to work for our clients. We’re doing alright. A lot of it has to do with how seriously we take internal surveys and team feedback and put it to action. (I’ll have examples of that to share soon).
The traditional calc is simple: (# of employees leaving / total employees) x 100
But there’s a few things about these numbers that make them a bit lacking:
👉Periods of fast growth?
Even if you adjust the denominator (total employees) for averages, things get skews when you’re looking at rapid growth.
E.g. Hirewell started 2021 with 45 employees. Ended with 90. It happened progressively throughout the year.
And a lot of companies are in this situation.
👉Regrettable vs non-regrettable turnover?
Regrettable turnover i.e. you kinda messed up. Lots of examples: you didn’t align during the interview process to understand their long term objectives. Development was lacking. Not enough career pathing created. Or some of those things did exist but you dropped the ball in communication/management.
Sometimes great team members want to do something new and it sucks you couldn’t offer it to them.
Non-regrettable turnover: it was a bad fit and neither side is losing sleep over it. Live and (hopefully) learn.
👉Voluntary vs involuntary turnover?
Are people leaving on their own (on good or bad terms)? Or are you forcing them out? If the latter is happening consistently…you’ve got some real issues.
I dig data. But without a proper interpretation + action taken it’s just a lot of noise.
I’ll share more soon about how we track things to make improvement internally. In the meantime, I’d love to hear from y’all about what you find valuable.
Full episode of Hirewell’s Data Insights** Q1 2022 available here.
And yes, the title of this clip is a Friends reference. Thanks for noticing.
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The one where Matt brags about our 6% turnover