The following blog is an in depth breakdown (with example) of HR Demand/Supply forecasting terms and tools. This blog is useful for all HR professionals to plan recruitment in a calculative way which is more useful and efficient for the company.
3. Contents of This Presentation
Here’s what you’ll find in this presentation
1. Definitions of Attrition, Staff Turnover,
Labor Wastage
2. Differences and similarities amongst the
three terms
3. Usage
4. Divisions
5. Markov’s Regression
6. Usage
7. Example for usage
8. Pictorial Example
4. Attrition
This is a process in which the
workforce dwindles at a company,
following a period in which a number
of people retire or resign, and are not
replaced.
5. Staff Turnover
The employee turnover rate is calculated
by dividing the number of employees who
left the company by the average number
of employees in a certain period in time.
This number is then multiplied by 100 to
get a percentage.
6. Labor Wastage
This refers to the ratio of a number
of employees who leave a company through
attrition, dismissal or resignation to the total
number of employees on the payroll in that
period. It's used for measuring employee
retention.
7. Although the three terms have similar
definitions, Attrition and Staff
Turnover are the most commonly
used terms in HR. The lesser used
term but running along the similar
lines is Labor Wastage.
8. ATTRITION
If an employee is
leaving the company
due to reasons that
are in the control of
the organization (eg:
salary, timings etc)
then it is called as
Controllable Attrition.
When the reason for
an employee leaving
the company is
personal and out of the
control of the
organization (eg:
immigration for
education, marriage
etc)then it is called
Uncontrollable Attrition.
UNCONTROLLAB
LE ATTRITION
CONTROLLABLE
ATTRITION
9. ATTRITION
When the employee
who leaves or quits
the company is one of
the top performers,
then it is a loss for the
company. Hence this
is termed as
Dysfunctional Attrition.
When the employee
who quits the
company is in the
bottom performers, it
is called a Functional
Attrition.
DYSFUNCTIONAL
ATTRITION
FUNCTIONAL
ATTRITION
10. ATTRITION
When an employee
leaves the company
by his own will, it is
called as Voluntary
Attrition.
When an employee is
forced to leave or is
fired from a
company, it is termed
as Involuntary
Attrition.
VOLUNTARY
ATTRITION
INVOLUNTARY
ATTRITION
11. PLANNED
RECRUITMENT
The company’s process of a well mapped out
recruitment strategy is one of the main factors for
the success of the company. HR Managers most
commonly use the Markov’s Regression to figure
out planned recruitments.
Markov’s Regression is basically a tool for demand
forecasting. It accurately determines how much
man power is needed by the company.
12. The following is a pictorial
representation and explanation of the
Markov’s Regression.