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Agenda Item No 7

 

The Vale of Glamorgan Council

 

Scrutiny Committee (Corporate Resources) - 21 July 2015

 

Report of the Managing Director

 

Annual Turnover Report - April 2014 to March 2015

 

Purpose of the Report

1.         To provide a detailed insight into employee turnover rates within the Council, for the period 1st April 2014 to the 31st March 2015, using the themes within the workforce plan.

Recommendation

It is recommended that Scrutiny Committee note the position in relation to employee turnover.

Reason for the Recommendation

To bring matters to the attention of Members of the Scrutiny Committee in line with corporate objectives.

Background

2.         This report has been provided in response to a request from Members for an analysis of employee turnover in the Council, for consideration alongside the workforce plan.

3.         For the purposes of clarity, employee turnover has been assessed on the basis of the number of employees leaving the Council as a percentage of the total number of staff (headcount) employed by the Council.

4.         This report compares the turnover figures between April 2013 to March 2014 and those between April 2014 to March 2015 to assist performance monitoring of turnover over both periods and to draw meaningful comparisons.

5.         Following a request from members, this report has been restyled to include further analysis of the reasons why people choose to leave employment with the Council.

Relevant Issues and Options

6.         The turnover figures for the period April 2014 to March 2015 indicate a slight increase (from 8.64% to 9.08%), in comparison to the same period in the previous year.

7.         Corporate turnover has increased from 9.30% to 9.87%, and turnover in Schools has increased from 8.00% to 8.38% in April 2014 to March 2015, in comparison to the period April 2013 to March 2014.

 

April 2013 to March 2014

April 2014 to March 2015

 

Number of leavers

% of headcount

Number of leavers

% of headcount

Corporate total

247

9.30%

250

9.87%

Schools total

221

8.00%

239

8.38%

Grand total

468

8.64%

489

9.08%

 

 

 

 

8.         A comparison of employee turnover from the previous year is set out in the table below:

9.        The main reason for measuring and analysing levels of employee turnover is to be able to plan for future workforce requirements, evaluate the cost of replacement and the capacity to provide a service. The loss of specialised skills, key stakeholder knowledge and relationships, where recruitment can be expensive or it can take considerable time to recruit the right person, turnover can be problematic. In contrast, where recruiting to a vacancy can be done cost effectively and efficiently, where appropriate training is able to be provided or the provision of how a service is delivered is evaluated and possibly reconfigured, a higher turnover rate may be beneficial in such circumstances.

Turnover by Directorate

10.      The levels of employee turnover have increased in all Corporate Directorates and in Schools over the period April 2014 to March 2015 in comparison with the same period in 2013/14. This is with the exception of the Directorate of Learning & Skills, where the percentage of leavers has decreased in comparison with the same period in 2013/14.

11.      The majority of employees from the former Directorate of Corporate and Customer Services were transferred to the Resources Directorate in July 2014. This helps to explain the disproportionate increase in turnover for the Resources Directorate from 2013/14, as 11 leavers came from the former Directorate of Corporate and Customer Services

12.      The highest proportion of employee turnover in relation to the size of the Directorate  in both reporting periods continued to be in Development Services (40 leavers from an average headcount of 245 employees). The next highest proportion of employee turnover is in Resources (46 leavers from an average headcount of 377 employees).

13.      A table showing the turnover rate by Directorate is set out below and a further, more detailed breakdown of each Directorate into Services can be found in Appendix 1.            

 

April 13 to Mar 14

April 14 to Mar 15

 

Directorate

Number of leavers

% of total Directorate headcount

Number of leavers

% of total Directorate headcount

Direction of travel

Corporate & Customer Services

12

12.50%

*

*

NA

Development Services

41

15.83%

40

16.33%

é

Resources

23

7.74%

46

12.20%

é

Visible Services & Housing

66

9.12%

70

10.17%

é

Learning & Skills

57

8.56%

45

7.44%

ê

Social Services

48

7.84%

49

7.92%

é

Schools

221

8.00%

239

8.38%

é

Total

468

8.64%

489

9.08%

é

 

* The majority of the staff from the Directorate of Corporate and Customer Services restructure were transferred to the Directorate of Resources from July 2014.

14.      Appendix 2 shows the same breakdown of Directorates, but focuses just on voluntary resignations.

Turnover by leaving reason

15.      Voluntary resignations from the council have increased marginally from 285 between April 2013 and March 2014 to 288 during the same period in 2014/2015. This has helped to facilitate restructuring where necessary and mitigate the need for redundancies.

16.      The number of redundancies have increased from 14 to 42 in the reporting period (14/15). This is to be expected and projected within the Medium term Financial Plan, and is inevitable, given the challenges that departments have and will continue  to face to provide an efficient service whilst managing the reductions in public service finances.

17.      Members will be aware of the council's positive approach to managing change, which helps to mitigate, avoid and reduce the incidence of compulsory redundancy. This is supported by the council's redeployment procedure which gives council employees, whose jobs are at risk of redundancy, dedicated support to find alternative employment in the council. This aims to to maintain job security for employees and retain the knowledge, skills and experience gained from employees who are already employed by the council.

18.      During  the reporting period April 2014 to March 2015 there were seven redeployment trial periods, six of which were successful (one withdrew). From 1st April 2015 to the date of writing this report there have been 13 redeployment trial periods, with 11 of these resulting in the employees being successfully redeployed. Two trials are currently ongoing.

19.      The numbers of dismissals, retirements and end of temporary contracts have all decreased over the comparative reporting period. The TUPE figures account of the transfer of a cleaning team in Housing & Visible Services, located at Llantwit Major Comprehensive School, to an external contractor in August 2014.

20.      The reasons for leaving are set out in the table below. A more detailed breakdown, including more specific reasons that make up the leaving categories can be found in Appendix 3:

 

April 2013 to March 2014

April 2014 to March 2015

Leaving reason

Number of leavers

% of headcount

Number of leavers

% of headcount

Dismissal

26

0.48%

13

0.24%

End of temporary contract

44

0.81%

43

0.80%

Retirement

66

1.22%

62

1.15%

Resignation

285

5.26%

288

5.35%

Redundancy

14

0.26%

42

0.78%

TUPE out

0

0.00%

12

0.22%

Other

33

0.61%

29

0.54%

Total

468

8.64%

489

9.08%

 

 

 

 

 

 

 

 

 

21.     Exit interviews continue to play an important part in identifying the reasons why people choose to leave employment with the council. Leavers can either choose to complete an exit questionnaire or have an exit interview with either their Line Manager or a Personnel Officer. Exit questionnaires are sent to the leaver, along with a pre-postage paid return envelope, but there is no obligation for these to be completed and only a small proportion of these are returned.

22.      During the reporting year (period April 2014 to March 2015), 11.5% of corporate voluntary leavers chose to complete exit interviews/questionnaires. The replies have been used to analyse and to report on the reasons why these people choose to leave employment with the council. Further analysis of the responses to exit interviews/questionnaires and the reasons people have given for leaving employment with the council can be found in Appendix 4.

23.      An on-line version of the exit questionnaire will be trialled alongside the existing process to try and improve the level of response behind why employees choose to leave the council. A link to the questionnaire will be emailed to those who have notified the council that they are leaving, this can be completed online, and results collated directly within the HR department.

24.      The council's work in relation to staff engagement and the subsequent workshops will be helpful in informing our approach to staff retention issues. As members will know, the workshops will focus on communication, training, engagement and the expectation from managers

Turnover in wider comparison

25.      The CIPD Resourcing and Talent Planning Survey (2013) reported an overall turnover rate of 9.4% in the public sector and 11.9% across all sectors in the UK. Their next CIPD survey is due to be published later in 2015.

26.      XpertHR benchmarking research (2013) on labour turnover rates found the mean average voluntary resignation turnover rate for UK employers was 10.6%.

27.      According to the information published by the by the Local Government Data Unit and Welsh Local Government Association, the average turnover rate in local authorities in Wales was 10.8% (2013/14).

28.      The turnover rate for the Vale of Glamorgan Council for 2014/15 falls below the above comparisons with an overall turnover of 9.08%.

29.      Current research from the Hay Group (carried out in association with the Centre for Economics and Business Research (CEBR)) suggests that employee turnover across all sectors is expected to rise to approximately 18% by 2018.

Resource Implications (Financial and Employment)

30.      The incidence of a high turnover has potential resource implications and may place constraints on the service and the ability to deliver a high quality provision. Where recruiting a replacement is necessary, the cost of advertising, recruiting and training replacement employees are some of the obvious costs of employee turnover. The need to retain skilled and experienced staff is important as the Council responds to ongoing financial pressures, especially in areas where the Council continues to experience difficulties in recruiting, as highlighted in the workforce plan.

Sustainability and Climate Change Implications

31.      There are no sustainability and climate change implications directly arising from the content of this report.

Legal Implications (to Include Human Rights Implications)  

32.      All legal implications including the Human Rights Act and Data Protection Act will have been considered within the implementation of policy provisions.

Crime and Disorder Implications

33.      There are no crime and disorder implications directly arising from the content of this report.

Equal Opportunities Implications (to include Welsh Language issues)

34.      Any turnover has the potential to impact the workforce profile and diversity of the Council. A stringent recruitment and selection policy, along with the Public Sector Equality Duty Action Plan, is in place to ensure equal opportunities in the recruitment and replacement of any leavers, ensuring the Council remains compliant with its obligations under the Equality Act.

Corporate/Service Objectives

35.      The Council should be mindful of the impact of turnover rates on the Council's ability to deliver corporate objectives.

Policy Framework and Budget

36.      This report is a matter for the Executive decision by the Cabinet.

Consultation (including Ward Member Consultation)

37.      The overall turnover figures are reported quarterly through the Corporate Performance Indicators.

Relevant Scrutiny Committee

38.      Corporate Resources

Background Papers

Appendix 1 - Breakdown of Directorate leavers by Services.

Appendix 2 - Breakdown of Directorate voluntary leavers by Services.

Appendix 3 - Breakdown of leaving reasons

Appendix 4 - Exit interviews/questionnaires

 

Contact Officer:

Reuben Bergman, Head of Human Resources

 

Officers Consulted

Shared with the Corporate Management Team

Adrian Unsworth, Operational Manager - Human Resources

 

Responsible Officer:

Rob Thomas, Managing Director