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An Annual Report on Classified Employee Turnover for Fiscal Year 2007

December 2007

Report Number 08-703

Overall Conclusion

The statewide turnover rate for full- and part-time, classified employees at state agencies in fiscal year 2007 was 17.4 percent, based on a total of 25,356 voluntary and involuntary separations.

The 17.4 percent turnover rate is a 10.1 percent increase in the turnover rate compared to fiscal year 2006 (15.8 percent) and the highest turnover rate in the last five years.

However, excluding involuntary separations and retirements decreases the statewide turnover rate to 10.8 percent. This rate is often considered a true turnover rate because it reflects preventable turnover. Employee turnover can be both negative and positive. Negatives include the associated costs of turnover, such as training and orientation of new employees, recruitment and selection of new employees, leave payout to departing employees, and lower productivity in the workplace during the time that a position is vacant and during the time that a new employee is learning the job.

However, some turnover will always occur and is normal for any organization. Turnover can create positive outcomes for employers because they can replace low-performing employees with high-performing employees. There is often a financial benefit gained as a result of the difference in the salary paid to an experienced employee who separates from an agency versus the salary paid to a new employee who takes the departing employee's position. However, when organizations start losing their high-performing, highly skilled, and experienced employees, turnover may begin to negatively affect the organizations' business operations.

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