Professional Documents
Culture Documents
Attrition Rate
Attrition Rate
CAUSES OF ATTRITION
Attrition is an expected yet dreaded cost of business. Essentially, there are two causes
of attrition, which can be grouped into two broad categories
Functional attrition and Preventable attrition.
FUNCTIONAL ATTRITIONFunctional attrition is unavoidable, inevitable turnover. Examples include employees
who retire, employees who leave for a spouse's job transfer, and employees who leave
because of health problems or to care for sick relatives. In other words, functional
attrition is caused by circumstances that can't be controlled. You must expect and
accept this type of turnover.
PREVENTABLE ATTRITIONPreventable turnover, on the other hand, can usually be controlled and avoided but
often isn't i.e.- Poor hiring practices, misguided policies, low salaries and inflexible
corporate attitudes are some of the preventable reasons people leave companies.
Preventable turnover occurs when your company can change a policy or find a solution
to keep employees from leaving but doesn't
Administrative tasks
4. What types of administrative tasks are associated with an employee leaving the
organization? {Ex. processing records, security, payroll, benefits; Notice Period}
5. How many individuals are typically involved in completing the administrative tasks
associated with a teacher leaving? What are their titles/positions?
6. How much time does it take for ALL administrative tasks to be completed?
Advertising
7. In what ways do you advertise openings for a new / replacement positions?
{Newspaper, Internet, etc.}
8. Do you usually advertise for multiple positions at the same time? If so, in a typical
year, how many positions do you advertise for at one time?
9. What types of advertising costs do you typically encounter when trying to recruit for a
position? {Please provide cost estimations for each category of advertising costs}
Recruiter
10. Do you use recruiters in trying to find qualified candidates? How many recruiters do
you employ? {If none, please go to question 15}
11. What types of activities will a recruiter typically perform?
12. Is this recruiter paid on a consulting or salary basis?
13. If salaried, what is the salary range for a recruiter? If consulting, what is the typical
consulting fee?
{If consulting, please specify the amount of the recruiters time associated with the
consulting fee.}
14. In a typical year, how many new teachers does the recruiter recruit? How many will
actually be hired?
Travel
15. Do you pay any travel costs (either for the recruiter or the applicants) during the
hiring process?
16. If so, what is the average per position?
Processing applicants
17. How do you process applications and resumes?
18. Who handles this task? {Please specify the number of individuals involved and
their titles/positions}
19. How much time is associated with processing applications/ resumes?
20. What types of background checks do you perform on prospective employees?
21. Who is involved in this task? {Please specify the number of individuals involved
and their titles/positions}
22. How many background checks do you typically conduct for a single position?
23. How much time is associated with conducting background checks on a single
applicant?
Interviews
24. How many interviews do you typically conduct for a vacant position? Do you ever
conduct multiple interviews with the same applicant?
25. Who usually conducts these interviews? {Please specify the number of individuals
involved and their titles/positions}
26. How much preparation time do interviewers usually need for these interviews?
27. How long do these interviews typically last?
28. Once interviews have been conducted, how do you choose which applicant to extend
an offer to?
29. Who is involved in this selection process? {Please specify the number of individuals
involved and their titles/positions}
30. How long does the selection process typically last?
Co-ops
31. Does you district belong to an electronic co-op which does the screenings and
qualifying of applicants? {If not, please go to question 35}
32. What are the costs associated with belonging to this co-op?
33. How does this co-op work? What steps does it eliminate in the hiring process?
34. How many positions in a typical year does your organization hire from the coop pool?
Post-employment tasks
41. What types of administrative tasks must be completed after a candidate is hired?
{Ex. establishing payroll, security, benefits, computer passwords, email; dissemination
activities}
42. Who is involved in these tasks? {Please specify the number of individuals
involved and their titles/positions}
43. How long does it typically take for these administrative tasks to be completed?
Orientation
44. What types of fresher support activities (Induction Plan) do you offer new joiners?
{If none, please go to question 47.}
45. How many new joiners attend these activities in a year?
46. Who is involved in conducting these activities? {Please specify the number of
individuals involved and their titles/positions}
47. What type of time commitment is usually required of the individuals involved?
{Other than the freshers}
48. Are new joiners given any orientation materials? If so, what are the costs
associated with the materials for EACH of them?
Training
49. How is your organization assisting employees with the new requirements
for professional development training associated with certification?
50. For employees in their first year in the company, how much professional
development will you organize? {In terms of cost for training, training materials}
51. How many days are the new joiners dont attend work due to professional
development training?
The following table can help in capturing the data to calculate the turnover cost
Turnover Cost Calculations
The following rules are used in all calculations of turnover cost. If any
calculation deviates from these rules, a footnote describes the rule used for the
calculation. Sources of information are also noted.
Estimations of time for the interview: - If multiple individuals are involved in a
task, the reported time is divided evenly among all individuals involved.
Stipends, other bonuses and costs are computed for the amount invested in
the resigned / terminated employee and the amount provided to new joiners filling
the vacant positions.
Task
Time on
Task
SEPARATION COSTS
Exit Interview
Grade A
Grade - B
Separation Administration
cost
Grade A
Grade B
HIRING COST
Ad Cost
Recruitment Cost
Processing Applications
Position A
Position B
Reference Checks
Position A
Position B
Employees
Involved in the process
Cost per
Year
Interviews
Position A
Position B
Post-employment Admin Tasks
Grade A
Grade - B
Stipends
Grade A
Grade - B
Other Bonus
Grade A
Grade - B
TRAINING COSTS
Orientation
Grade - A
Grade B
Training
Grade - A
Grade B
The final turnover cost can be obtained, by adding up all these costs.