This measure determines the employee turnover rate, which is calculated by dividing total employees terminated (both voluntary and involuntary) by the average employee for the period (sum of employees in the start and end of the reporting period divided by two), multiplied by 100 percent. It is part of a set of Process Efficiency measures that help companies optimize their "manage separation" process by minimizing waste and refining resource consumption.
((Number of voluntary employee terminations+Number of involuntary employee terminations)/Number of business entity employees)*100
Process efficiency represents how well a process converts its inputs into outputs. A process that converts 100% of the inputs into outputs without waste is more efficient than one that converts a similar amount of inputs into fewer outputs.
The metric value which represents the 50th percentile of a peer group. This could also be communicated as the metric value where half of the peer group sample shows lower performance than the expressed metric value or half of the peer group sample shows higher performance than the expressed metric value.
Full-time Employee, Part-time Employee, and Temporary Employee
For the purpose of this survey, a regular full-time employee is hired for an indefinite period of time and is normally scheduled to work forty hours per week. Appointment is continuous, subject to satisfactory performance and availability of funding.
For the purpose of this survey, a regular part-time employee is hired for an indefinite period of time and is scheduled to work less than forty hours per week.
A temporary employee is employed for a finite period of time, to fulfill a time-limited role, or to fill the role of a permanent employee who is absent from work. The length of time an employee can work for the organization and be considered a temporary employee may be governed by employment legislation.