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An Annual Report on Classified Employee Turnover for Fiscal Year 2008

December 2008

Report Number 09-703

Overall Conclusion

The statewide turnover rate for full- and part-time, classified employees at state agencies in fiscal year 2008 was 17.3 percent, based on a total of 25,804 voluntary and involuntary separations. In fiscal year 2008, the average age of a classified employee was 43.9 years and the average state length of service was 10.4 years. The average salary for a classified regular full-time employee in fiscal year 2008 was $37,365.

The 17.3 percent turnover rate in fiscal year 2008 represents a small decrease compared to the fiscal year 2007 turnover rate of 17.4 percent, and it is the second highest turnover rate in the last five years.

However, excluding involuntary separations and retirements decreases the fiscal year 2008 statewide turnover rate to 10.5 percent. This rate is often considered a true turnover rate because it reflects preventable turnover. The fiscal year 2008 turnover rate decreased slightly since fiscal year 2007.

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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