ESSENTIAL METRICS
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EMPLOYEE TURNOVER:
(NUMBER OF EMPLOYEES
WHO HAVE LEFT THE COMPANY IN
THE PREVIOUS YEAR ÷ NUMBER OF
EMPLOYEES AT THAT TIME) x1OO
High turnover can present a significant
financial burden to your business. It is
therefore important to track this metric
to keep it as low as possible. Doing so
will allow you to identify problem areas
and trends and adapt in light of these.
Handy Hint: *The UK average employee
turnover rate is approximately 15%
a year, but varies greatly between
industries. Look up your industry’s
average rate and make a comparison.
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OVERTIME:
NUMBER OF HOURS
WORKED OVERTIME PER YEAR,
PER EMPLOYEE
Calculating the extra time your staff are
spending in the office can be helpful to
see where the need for extra resources
and manpower lies. It can also help you
identify areas where productivity might
be falling short.
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Handy Hint: Employers aren’t legally
obliged to pay workers for overtime
but employees’ average pay for the
total hours worked must not fall below
National Living Wage, so be sure to
adhere to this.
AVERAGE LENGTH
OF SERVICE:
TOTAL YEARS SERVICE ÷ NUMBER
OF EMPLOYEES
Employee turnover is a costly
business, particularly in senior roles.
As mentioned, measuring this metric
can help you to see where greater
investment might help to generate
higher returns.
Handy Hint: This metric should be
considered against an industry average
– a “good” average length of service can
vary greatly across sectors.
6
ABSENCE RATE:
NUMBER OF SICK DAYS TAKEN
÷ NUMBER OF WORKDAYS IN
THE YEAR
Sick days incur significant costs to your
company. Measuring absence rates can
be used as a good starting point for
ascertaining patterns and can be used to
set a benchmark for the company.
Handy Hint: **To give you a rough
guide, the average number of sick days
taken in the UK per employee is 5.7 days.
*What is the ideal employee turnover rate?,
Monster
**XpertHR, Absence rates and costs 2016
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