Question on Turnover

Six Sigma – iSixSigma Forums Old Forums General Question on Turnover

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    Hello Everyone,
    Our organization is currently in the process of deploying a new Quality Assurance program.  One of the big things we are trying to improve is employee turnover & morale. 
    What is an acceptable level of manageable turnover in your organization? 
    At what point does turnover become a real issue that warrants attention?
    I know these questions sound pretty straightforward, but we’re just looking for best practices as well as making sure we’re considering most factors.
    Any help with this matter is appreciated…..



    It Depends on what industry and skill set you are talking about, usually lower level jobs equate to hgher turnover, etc..



    Hi Mark,
    You can collect historical turnover data, obtain a mean turnover period, and set a % improvement as an acceptable benchmark. (one which the management team can agree on).
    In my opinion, turnover becomes more of an issue with higher training fees and/or longer learning curve, 2 factors which you can convert into data easily. You can actually use an FMEA to identify which are the groups you want to focus on.
    Morale? Isn’t that spelt m-o-n-e-y? :)
    Hope it helps.


    Mike Carnell

    There is an association of HR managers – I don’t recall the exact name of the group. There could very easily have data or direct you to a place that has data you can use for benchmarking.
    Any turnover costs you money. Turn over is a defect in and of itself. It is a defect in the hiring system so why would you be willing to accept any? Initially you might want to set some improvement target (probably won’t go to zero immediately). Just because you hit an industry norm doesn’t mean you should back off. That just makes you like everybody else. If you intend to distance yourself from the rest of the industry you need to do ___?___.
    The SS problem solving equation Y= (f)x. Turnover is a function of what (it is a Y).
    Good luck.



    Mark,We are a government contractor and are below the industry average (8.5% vs. 12%); however, an employee satisfaction survey indicated employees believed we had a retention problem. To determine issues, we used a variety of methods to evaluate turnover impact to our business. We looked at turnover by years of service, by job classification, and by department. When there was a high turnover in a specific department, job classification, or among a specfic length of service, we did an FMEA.Hope this is helpful.

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