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Employee turnover (G4-LA1-b) Methodology

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In 2018, the GRI G4 Sustainability Reporting Guidelines were superseded by the GRI Sustainability Reporting Standards (GRI standards). This is the methodology for G4-LA1-a which has been superseded by GRI 404-1 - the current GRI 404-1 metric can be found here.

About

This metric is based on the Global Reporting Initiative (GRI) G4 Guidelines. It covers one of the reporting requirements of Indicator G4-LA1 - 'Total number and rates of new employee hires and employee turnover by age group, gender and region'. In addition this Indicator asks for the rate of new employees turnoverhires by age group, gender and region and total number and rate of employee hires during the reporting period, by age, gender and region.

GRI's definition of employee turnover is "employees who leave the organization voluntarily or due to dismissal, retirement, or death in service."

The number, age, gender, and region of new employee hires of the organization can indicate the organization’s strategy and ability to attract diverse qualified employees. This information can signify the organization’s efforts to implement inclusive recruitment practices based on age and gender, and the optimal use of available labor and talent in different regions.

A high rate of employee turnover can indicate levels of uncertainty and dissatisfaction among employees, or may signal a fundamental change in the structure of the organization’s core operations. An uneven pattern of turnover by age or gender can indicate incompatibility or potential inequity in the workplace. Turnover results in changes to the human and intellectual capital of the organization and can impact productivity. Turnover has direct cost implications either in terms of reduced payroll or greater expenses for recruitment of workers.

Methodology

This metric is looking for the total number of employees that left the organisation during the reporting period:

For WikiRate researchers:

Companies who align reports to GRI’s Sustainability Reporting Standards often include a GRI Content Index or Annex where GRI disclosures, with GRI codes, are listed.

  • Use the GRI Index, CTRL F, Command F or search button on source preview to search for this index and metrics within the report

  • Use G4 codes, G3 codes or keywords to quickly find values, keeping in mind that some companies report on the metric using different terms, e.g. G4-LA1 or LA1, employee turnover or employees leaving the organisation

  • Always check the metric question and methodology for the unit of measure or currency - researchers may need to carry out calculations or conversions before entering the final metric value

  • Add comments documenting exactly where within the source you found the information (page number) and include details of simple or complex calculations or conversions made to determine the metric value. For instance, if provided, include a breakdown of the new hires by age group, gender, and region.

  • If you are unable to locate a metric value in a source you can search for additional sources where the data is available and add a new source

Further guidance on how to research values for GRI-based metrics is available here, including detailed guidance on adding, editing and Checking metric values.

 

Global Reporting Initiative compliance guidance for companies:

To calculate the total number of employees that left the organisation during the reporting period - G4-LA1-b:

  • ​Identify the total number of employees that left the organisation during the reporting period