As the HR manager you have been asked to provide the senior management team with
ID: 417125 • Letter: A
Question
As the HR manager you have been asked to provide the senior management team with turnover costs for one high turnover position. Using textbook or available online resources, calculate turnover and analyze the variables involved. Also, identify any other data that might be relevant. Finally, how have you observed/felt the ramifications of turnover in your workplace/former workplace?
The position is: Machine operator
Number of turnovers (people who left): 85
Average wage: $11.50/hour
Number of employees: 250
Cost of benefits : 33%
Explanation / Answer
HR managers are faced with the tough task of keeping turnover under control. This is especially important in service and technology industries, which have greater dependence upon consistent quality of human capital. So high attrition rate and talent retention are of paramount importance for HR managers. In order to reduce the employee turnover, more standard methods are being used by HR managers for better results from employing strategies.
Turnover rate is measured as the ratio of number of employees turnovers versus total number of employees.
Employee Turnover ratio = 85 / 250
= 0.34
Other data related to recruitment and training cost is relevant in order to accurately quantify the turnover cost.
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