Personnel Turnover Rates

By Jack M. Wolfe, Ph.D.

In the November 1, 1976 issue of Computerworld, page 5, it was reported that a research study found that the average firm experiences a 30% to 40% turnover in DP personnel because of voluntary resignations each year. We surveyed five of our client companies that use our Aptitude Assessment Battery: Programming test. One of these companies employs fewer than 50 programmers, two employ between 50 and 100 programmers, and the other two employ more than 100 programmers.

The voluntary resignations in these five companies varied from a low of below one percent to a high of 29%, with an average of less than 12%.

The turnover rates due to inadequate capabilities for the work of programming in these companies varied from zero, in two of the companies, to a maximum of 5% with an overall average of less than 2%.

The turnover rates due to unfavorable behavioral characteristics varied from zero to one percent.

The personnel managers in these five companies cited the following reasons for the voluntary resignations:

By far the most common reasons cited were the first two on the above list.

Although not reported in these companies' responses, this writer has found that some programmers resign because they find that they are doing their own work and a substantial part of the work or training of a weak or inadequate programmer. The morale of a superior programmer suffers when he approaches his supervisor for financial recognition of his superior work in comparison with the performance of other programmers in his group and is told that the pay scale calls for the same pay for the same length of service. Nor will the superior programmer be satisfied when he is told by his supervisor that the group must 'average up', that is, that the better programmers in the group must make up for the below average performance of the weaker members of the group.

The lack of flexibility given to the programming supervisor by higher management for suitable recognition of the highly superior programmer may well be the chief factor in programmers' leaving for the two principal reasons cited above, namely highly salary offer and greater opportunity for advancement.

Management sometimes appears to be unaware that the employment of a weak or inadequate programmer may have the effect of the company's losing one of its best programmers.