Glossary
Employee turnover
Employee turnover is the share of staff who left in a period, usually a year: leavers divided by average headcount, split into voluntary and involuntary. The split matters more than the total, because letting go of two people you should never have hired is a different story from four good ones resigning. Track first-year turnover on its own; that one is a hiring measure.
01
Splitting the number so it says something useful
A monthly or quarterly row. A weekly board cannot carry it, because in most weeks nobody leaves. What the Scorecard can carry is the leading side: one-on-ones held, seats open, days a seat has stayed open, and new hires past their ninety-day mark with a plan somebody actually signed.
Turnover arrives too late to fix and costs too much to ignore, so the interesting work all sits in front of it. Replacing somebody costs a large fraction of their salary once you count recruiting, the empty seat and the months of learning. A company measuring only the annual percentage hears about a problem two quarters after the first person left.
Worked example: A regional accounting firm ran turnover at eleven percent and treated it as normal for the sector. Split out, voluntary turnover among staff with under two years of service was thirty-one percent, and all of it came from one office. The annual number had hidden that for three years, because the other two offices barely moved at all.
Sources: klipfolio.com/kpis/human-resources; bls.gov/jlt/jltdef.htm
eNPS
eNPS is the same question turned inward: how likely are you to recommend this company as a place to work, scored zero to ten, promoters minus detractors.
02Revenue per employee
Revenue per employee divides annual revenue by full-time equivalent headcount and gives one crude read on how much a company produces per person.
03Lagging indicator
A lagging indicator reports a result after the period that produced it has closed: revenue, gross margin, employee turnover, satisfaction scores.
04KPI examples by department: sales, ops, finance, HR
Concrete KPI examples for each department in a small company, tagged leading or lagging and weekly or monthly, to help you build a Scorecard that works.
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