City Employee Turnover Rate
- Analysis of Performance
- Metric Definition
- Why Is This Important?
- City Organization Impact on Performance
- Benchmark Information
Analysis of Performance
The City's annual turnover rate remains relatively consistent, typically between 5.0-6.7 percent annually. However, as baby boomers retire and younger generations change jobs more frequently, it is anticipated that turnover rates will increase. The City's target of less than 8.0 percent annual turnover was chosen in recognition of the likelihood City turnover rates will increase in the next few years and we monitor the trend carefully. For Q3 2013 the quarterly turnover for the City remains below the target rate and is similar to Q3 for the previous 2 years. Some experts anticipate an uptick in organization turnover as the economy stabilizes and unemployment/underemployment rates improve.
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