City Employee Cumulative Turnover Rate
- Analysis of Performance
- Metric Definition
- Why Is This Important?
- City Organization Impact on Performance
- Benchmark Information
Analysis of Performance
The City continues to monitor employee turnover as the labor market tightens and employment options become more readily available. Research indicates that the national trend toward accelerated turnover is expected to continue for the next 3 to 4 years; many experts anticipate annual rates will climb as high as 23%. In addition to Baby Boomer retirement, a new Mercer study of 3,000 US employees indicates that 45% of workers who are satisfied with the organizations they work for are looking for other employment options. Of Millennials responding to the survey, 44% are seriously considering leaving. Total City employee turnover at of the end of Q3 (8.33%) exceeds the annual target rate for 2015. Of those separating, approx. 36% are retirements while 52% are resignations. Employee engagement strategies that promote a total rewards approach where meaningful work, flexibility and career options are emphasized will be critical in attracting and retaining talent, particularly Millennials. Additionally, connecting employees to City's vision and mission, improving skills of managers and leaders throughout the organization, and ensuring that compensation, benefit and reward programs are market competitive remain important areas of focus.
Turnover is a measure of the rate at which employees leave employment with the City. It includes classified and unclassified management employees and all separation reasons (layoffs, and voluntary and involuntary terminations). While turnover is typically measured annually, this report includes turnover reported on a year-to-date basis for each calendar year. The rate is calculated by dividing the total number of employees who separated year-to-date by the average headcount for that reporting period (quarters are cumulative).
Why Is This Important?
Turnover is an important measure for three primary reasons ƒÂ- cost (replacing an employee can cost as much as 200% of the annual compensation for the vacated position), business performance (continuity of operations, productivity) and ability to maintain a qualified workforce.
City Organization Impact on Performance
High - Turnover rate is directly related to the quality and continuity of service provided to citizens. The City is committed to being an employer of choice, however the rate at which employees leave City employment is impacted by factors such as job market, retirement, and personal lifestyle choices.
Benchmarking in progress