Tom Vovers December 2013
Who is this guy?
“HR Veteran working
across industry in
What do you know about HR2B?
HR2B "Human Resources to Business"
is a professional services company
focusing on HR in Viet Nam.
HR2B has deep
practical experience of
the Viet Nam market
that enables us to
create Search results
What gets Measured gets
Voluntary turnover rate
Average LOS of current employees
Average LOS of Leavers
Special characteristics Leavers
Calculating your retention rate (stayers)
The number of “stayers” (employees who remain at the end of
calculation period) divided by the number of employees you had at
the beginning of your calculation period times 100 equals your
Example of Retention Rate Calculation
If you have 100 employees starting the first day of the month, and
90 employees at the end of the month, you have lost 10 of
employees. Your retention rate is 90 percent.
Calculating your turnover rate (leavers)
The number of “leavers” (employees terminating during your calculation
period) divided by the total number of people employed during your
calculation period times 100 equals your turnover rate.
Example of Turnover Rate Calculation
You had 175 people in your employment in January. Fifty employees
left by the end of the month. A simple turnover rate is 50 divided by 175,
which equals 28.6 percent.
Calculating your voluntary turnover rate
The number of employees who left voluntarily divided by the number of employees you had during
your calculation period times 100 equals the voluntary turnover rate.
Example of Voluntary Turnover Rate Calculation
Fifty total employees left, but only 12 were dissatisfied with the organizational policy, compensation,
and/or career opportunities. Good exit interview strategies should help you determine which
employees terminated voluntarily.
Involuntary - Of the other 38, 15 left when you cut a department, 7 women followed their husbands to
another part of VietNam, 11 were terminated for poor performance, and 5 became ill and could no
longer work. These numbers indicate involuntary turnover.
Average Length of Service
Number of current
Average tenure of
Calculating the average tenure of your employees
To compute the average tenure of workers, list each worker and the number of months the
worker has been at the organization. In this example, the time period is calculated in
months. Your tenure rate can be calculated by months, years, or other time periods.
The sum of months worked by all current employees divided by the number of employees
you have today equals the tenure of “stayers”.
Average LOS - Leavers
Number of “leavers”
Average tenure of
A calculation on longevity (total number of months worked before quitting) may highlight
the point at which employees “fall off”, allowing you to rethink your organizational
response. It may be useful for you to identify the average tenure of employees who left
within the previous 12 months, or within any time frame that accurately represents the
trend you are researching.
Calculating the average tenure of your leavers
The sum of months worked by “leavers” who worked in the last 12 months and resigned
before today divided by the total number of “leavers” who worked in the last 12 months
and resigned before today equals the average tenure of employees who have left over
the previous 12 months.
‘Special’ Characteristics Rate
Total number of
rate for Phuc
Calculating special characteristics of “leavers”
The number of “leavers” that display the identified characteristic divided by the total number
“leavers” during the calculation period times 100 equals the voluntary turnover rate for that special
Example of Special Characteristics Calculations
For this example, we will look at the number of employees supervised by Mary Jones who leave
voluntarily. Of the 12 employees who voluntarily left the organization, 3 were supervised by
Nguyen Thanh Phuc..
Total number of
For some positions, you may wish to determine a vacancy rate to see if there is a trend in a
job position. Or, you may wish to determine your overall vacancy rate to see if there is a
trend in your organization.
Calculating your vacancy rate
The number of vacant job-specific positions (or positions within the whole organization),
divided by the total number of job-specific positions (or within the whole organization),
multiplied by 100 equals your vacancy rate.
Tracking - Start today
Reporting - Agree with your boss
Managing - Add to Managers life
Sharing - Community
● Relatively easy to
measure with lower
error of measurement
● Focus on process /
● Easy to use to get what
you want from
● Requires estimates,
● Focus on long‐term and
● Harder to use, but don’t
Calculating Cost of Turnover
1. Costs to off‐board
2. Cost‐per‐hire for
3. Transition costs,
4. Costs from long‐term
disruption of talent
Short Cut Turnover Cost
Turnover costs are often estimated to be
● of the annual base salary
● of replaced employee
(150% commonly used)
What can you do about Turnover?
End of Contract
5 Ways to Retain and Motivate
Employee Value Proposition
Career Paths for Top Talent
1) EVP - Firing Starts with Hiring
For employees, the EVP – Employee Value
Proposition – explains why candidates choose
to work for you rather than other potential
Attract some, repel others.
Focus recruitment efforts.
Speed up integration of new person.
An effective onboarding process:
1. Analyzes and efficiently addresses skill gaps required to
meet performance standard
2. Provides organizational positioning skills
3. Aligns with organizational values and culture
Effective onboarding enables
faster cultural integration and
achievement of performance
standards. It can significantly
reduce transition costs
3) Performance Management
Aligns performance with strategic direction of
1. Optimizes performance contribution of
2. Shapes organizational culture
3. Fully engages employees
It all comes down to conversations. Every
decision made about performance
management should be framed by asking,
“Will this help or hinder meaningful
4) Employee Engagement
1. Strategic Alignment
2. Trust in Senior Leadership
3. Immediate Manager Working Relationship
4. Peer Culture
5. Personal Influence
6. Career Support
7. Developmental Opportunities
8. Employee Recognition
9. Pay Fairness
5) Different Career Paths
Top Talent on generalist career track
Require a high degree of learning agility
Top Talent on a specialist career track
Have specialized expertise developed over years of focused
Early career talent with all characteristics of Top Talent but limited
developmental experiences and possibly undetermined career path
Thanks for Coming
Good luck in
Motivating your Staff !