EMPLOYEE MOVEMENT

Employee movement encompasses the transfer of employees from an organization to another.

FACTORS AFFECTING EMPLOYEE MOVEMENT 1. Expansion 2. Contraction 3. Termination 4. Voluntary departure of other employee

HOW TO CALCULATE EMPLOYEE MOVEMENT (TURNOVER RATE) Employee turnover refers to the movement of employees from a company which calls for replacement with new hires.

The turnover is computed by dividing the number of employees who have left within specified period by the number of employees who were working for the organization, multiplied by 100.

Movement within an organization results from several factors. Movement can result from expansion, contraction, termination and the voluntary departure of other employees. The human resources demands of the organization and the availability of employees also drive movement within an organization. An effective headcount management system assesses this movement and analyzes the causes. Headcount management systems also work toward developing plans to stop the movement if it has a negative effect on the organization’s productivity.

Transfers Similar to movements, transfers within an organization also occur for a variety of reasons. In many cases, a transfer results from a labor shortage in one department of an organization. An organization can have temporary or permanent transfers. For example, a company might choose to temporarily transfer a specialized employee that has skills required in a different department or geographical location. On the other hand, a permanent transfer might result from the closure of a department and the reassignment of employees from the closed department to new areas within the company.