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business

recruitment

Reduce Employee Turnover words | Sylvia Kenna The HR Dept

In a recent interview the Minister for Employment, Joe Bossano stated “Gibraltar experiences possibly the largest turnover of labour in any economy in the EU at 33%.” One of the reasons for this is a transient workforce, however another reason is likely to be the manner in which staff are managed and rewarded. Interestingly a recent survey by Deloitte showed the top five reasons people seek new employment are primarily non-financial: • Lack of career progress (27%) • New opportunities in the market (22%) • Dissatisfaction with manager or supervisor (22%) • Lack of challenge in the job (21%) • Lack of compensation increases (21%)

However, the top five retention incentives for employees are primarily financial: • Additional bonuses or financial incentives (44%) • Promotion/job advancement (42%) • Additional compensation (41%)

(Taken from Deloitte’s new global talent survey, Talent 2020, September 2012) An estimate of the average cost of turnover per employee is around £5,000. This figure takes into consideration the cost of: • Recruitment, including advertising, agency fees • Using temporary staff • Paying overtime to cover additional work • Interruption of service • Induction including materials and time • Training

So you can see why keeping your staff turnover level low makes sense.

The simplest and most usual way of measuring labour turnover is to measure the number of leavers in a period as a percentage of the number employed during the same period, usually on a quarterly or annual basis. This is sometimes called the separation rate, and is expressed as follows: Number of leavers Average no. working X 100 = Separation Rate The average number working is usually taken to be the number working at the start of the period added to the number working at the end, the total then being divided by two. For example, if there are 210 workers at the start of the period being studied, 222 at the end of the period, and 72 leavers during the period, the separation rate is:

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o Go

• Flexible work arrangements (26%) • Support and recognition from supervisors or managers (25%).

Measuring Staff Turnover

72 210 + 222 2 X 100

e! y b

= 33.3%

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To keep your turnover rates beInduction Crisis - If staff leave low that of the average in Gibraltar here are five tips to improve after a short while make sure your recruitment process is working efemployee retention: fectively. Are you describing the Analyse turnover statistics so job and the company accurately? you can recognise any patterns. Make sure your induction process For example: Are your leavers is efficient, if people are not made in certain roles or working for to feel welcome and valued from a particular manager? Are they the beginning they will look for staff who have been with the or- alternate employment very soon. ganisation for only a short time? Another area to consider is the If you have the answers to these training for the role, make sure questions you can begin to look at this is not inadequate or poorly managed. possible causes.

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An estimate of the average cost of turnover per employee is around £5,000, so you can see why keeping your staff turnover level low makes sense GIBRALTAR MAGAZINE • MAY 2013

The Gibraltar Magazine - May 2013  
The Gibraltar Magazine - May 2013  

Gibraltar's fabulous business and leisure magazine. Crammed full of great features from finance to football, from fashion to arts. Enjoy i...