This week’s analysis focuses on the impact of Employee Turnover as a measure of the performance of a company’s Human Resources organization.

Creating and unlocking value in an organization starts with knowing precisely where things stand, and where the opportunities for improvement lie. To help, SAP’s Performance Benchmarking group publishes a short analysis each Monday, highlighting hot industry topics and high-impact strategies.

KEY QUESTION: How well do you manage employee turnover?

MM 130506 Employee Turnover


In Human Resources, accurate forecasts of employee turnover and workforce plans can spell the difference between success and failure of an organization’s people strategy. Indeed, our benchmarking analysis shows definitively that higher engagement and workforce productivity correlates with lower turnover, with top performers on turnover (i.e., those with lower turnover) scoring better on both metrics as compared to average levels.

For organizations looking to manage people better, research shows that HR can assist by supporting a corporate performance framework that is integrated into department and individual performance appraisal documents. For instance, according to our analysis, ensuring complete performance reviews for a higher percentage of employees on average leads to a 17% improvement in turnover.

Even more impactful, aligning compensation and resource plans to retain top talent in line with HR’s strategic objectives translates on average to 39% lower turnover.



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