What is the difference between a Soviet-style personnel officer and a human resources manager? The personnel officer is engaged in clerical work - reception, dismissal, maternity leave, salary payments, etc., in the human resources department are the oceans of papers. HR manager is engaged in resource management. He collects reliable statistics, makes its analysis, plans, calculates risks, proposes changes. He is involved in the management of business processes, in advanced companies he is called a business partner.
Frame rates: Big Four
The basis of modern HR management is statistics with the calculation of coefficients, the construction of graphs, the analysis and interpretation of changes in numbers by month, quarter, year. The turnover ratio for reception is one of the basic components of personnel analysis. It is part of the Big Four coefficients that record changes in the quantity and quality of personnel. These values are:
- The turnover ratio for reception is the percentage of employees hired from the total number of employees in the organization as a percentage.
- Dismissal turnover - the proportion of laid-off employees of the total.
- Full turnover - the proportion of those accepted plus those dismissed from the total.
- Staff turnover (not to be confused with the turnover on dismissal) - the proportion of those dismissed for discipline violations and of their own free will from the total number of employees.
This family of indicators perfectly describes the most important process - the movement of labor: the change in the number of employees as a result of personnel transfers (receptions, dismissals or transfers).
The Big Four: refinements and formulas
Personnel statistics are notable for a considerable number of nuances and small, but actually important details. For example, the average staff composition for any period is calculated rather cumbersomely: this is the sum of the number of employees for each day of the period divided by the number of these days. Compliance with this kind of arithmetic is necessary and justified: daily staff changes are much more intense than it might seem. This is not only the reception and dismissal, it is transfers, decrees, training, restructuring and much more - all that makes the staff turnover a constant process, which must be monitored in the most careful way.
Reception ratio formula :
The number of employees accepted for the period / average staff for the period × 100%
Rules for the analysis of the turnover ratio for the reception of workers
When analyzing any personnel statistics, the most important rules must be observed:
- Analyze only relative indicators (i.e., coefficients, no absolute numbers).
- Consider indicators only in conjunction with others and never alone.
- Consider indicators only in dynamics (as it was before) and in comparison with statistics of other related departments or companies.
To calculate one digit according to the formula of the turnover ratio for reception, enter it into the table and calm down on this is not our option. Who exactly came to the company? A pack of movers at a new warehouse? Or did you manage to lure two TOPs into the strategic planning department, which they hunted for six months? How many people got, how many let go? On their own or kicked out? How many valuable employees were not retained? And why do logisticians leave and come all the time?
17%: rejoice or tear the hair on the head?
For example, you are the new head of a company. The HR Director proudly reported to you that the turnover ratio for hiring personnel at your company was 17% over the last quarter. Are you happy or tearing hair on your head? In principle, both options are suitable, which one to choose?
First, ask for the same ratio, but for dismissal. At the same time, full turnover and staff turnover - that same big four - figures on the movement of personnel. Together with them, request the same indicators for the same quarter, but in the past and the year before last. One can reason with such data. By the way, if the HR director has delayed the required numbers or simply did not collect such statistics, dismiss it - this will be the right decision. The time for such personnel officers has passed. Now it's time to deal with 17% - is it a lot or a little?
HR high flight: think and reason
Important! The rates of reception ratio do not exist. To evaluate data at 17% is possible only by analyzing the entire family of indicators of personnel movement. The only figure you can focus on is staff turnover (the proportion of those dismissed on their own and for violations of the average headcount). This is a very rough and average 5%. The fluid or “Heychar’s nightmare” also depends on many factors and, above all, on who exactly quit. Leaders of large caliber are the least likely to leave, most often drivers, movers, assistants, and sellers. For such, the turnover rate may be 40%. Go:
1. Given:
Reception turnover 17%, dismissal turnover 3%, turnover 2%.
Diagnosis: this company is expanding, there is an intensive recruitment of new employees, some have been transferred to other positions (and this is natural in a growing company), almost no one is fired (also natural), even newcomers within the trial period who have made a wrong choice companies: the recruitment department works well, they select the right candidates for positions, everyone is happy. Excellent staffing picture, pleasing the heart of an understanding leader.
2. Given:
Reception turnover 17%, dismissal turnover 32%, turnover 23%
Diagnosis: a completely different situation. Apparently, the company is undergoing a difficult restructuring: downsizing (recruiting fewer people than being laid off), changing the structure of departments and subordinates, changing positions and functional responsibilities, certification of employees with demotion is likely (very high rate of turnover on dismissal, higher than the coefficient on reception). Not all employees are happy with such changes, people began to leave of their own free will - the turnover increased. The people are leaving more than coming. But such a movement is planned, no surprises. A frame picture is similar to a change of ownership.
3. Given:
Reception turnover 17%, dismissal turnover 0%, turnover 26%.
Diagnosis: alarming picture: a lot of people are leaving (for the average figure from TOPs to movers 26% is too much). They don’t move anyone in positions, nobody leaves to give birth or study. Newcomers are hired, but fewer than people lost. Does it go to bankruptcy? Severe crisis? By the way, if the turnover rate for receiving workers was 26%, that is, the same as for dismissal, then the degree of anxiety would have been lower: such turnover of employees is often observed in retail trading companies (the classic seller turnover).
Summary
The Big Four indicators of staff movement along with other personnel factors are an exciting matrix for everyone who loves and knows how to think. This is an excellent and objective material for making strategic decisions on human resources and business development. Knowing and understanding such indicators is a necessary and extremely relevant skill for any leader who thinks about tomorrow.