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To understand and control staff turnover, regularly calculate your turnover rate as a percentage using this simple method:

1. Find the average number of employees
   Add the number of employees at the start of the period to the number at the end, then divide by two:

2. Calculate turnover rate 
   Count how many employees left during the period. Multiply that number by 100, then divide by the average number of employees.

This percentage is your staff turnover rate, also called the separation rate. It helps you track changes over time and compare your business to industry averages for benchmarking.

Employee stability index

To measure how well you retain experienced employees, calculate the employee stability index (ESI) by using the following equation:

$$\mathrm{ESI}(\%)=\frac{\mathrm{Number\; of\; Employees\; with\; 1+\; Year\; Service}}{\mathrm{Total\; Employees}}脳100$$

A higher ESI means better retention of experienced staff.

Monitoring turnover patterns

To create a survival curve, plot the number of employees leaving against their length of service. Usually, turnover is highest among new hires and decreases the longer the employees stay. This curve helps identify when employees are most likely to leave and can guide your retention efforts.

Understanding why staff leave

To effectively reduce turnover, find out the reasons behind it:

Consult staff regularly

Talk to employees individually or in groups to uncover issues. See engaging with staff.

Exit interviews

Conduct interviews when employees leave to learn their reasons and spot trends. See when an employee resigns.

Staff surveys

Use surveys to measure satisfaction and address concerns promptly. See staff feedback, ideas, and forums.

Analyse your recruitment practices

Review hiring and selection processes to ensure you set clear expectations and hire the right people. See taking on staff.

By calculating your staff turnover rate and employee stability index regularly, and analysing turnover patterns and causes, you can better understand why employees leave. This insight enables you to take targeted actions to improve retention and build a stronger workforce.