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%. Some attribute the change to increased confidence in the economy and an uptick in Baby Boomer retirements. Approximately 16% of current classified, unclassified management and contractual City employees are 60+ years old. The average retirement age is 64 years. The 2014 annual turnover rate of 9.2% exceeded the 8% target and surpassed the trend for previous reporting years (2011-2013) which ranged from 5.0 to 6.7%. Turnover as of the end of Q2 (4.59%) suggests that the annual rate for 2015 will also exceed the target. Retention strategies include conducting exit interviews with employees to learn their reasons for leaving, creating a clear line of sight between employees and the City’s vision and mission, conducting “Stay Interviews” with key staff to discuss ways for them to remain engaged, improving skills of managers and leaders throughout the organization, and ensuring that compensation, benefit and reward programs are market competitive.
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 – 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