 Hello everyone and welcome to Friday. We're almost at the weekend. Some of you are closer than I am. I will share my screen. I have shared in the chat our presentation for today. I've also put it in the invitation. So let's see what we've got here. That's better. Okay. Hopefully everybody can see my screen. I can't see you. Somebody want to just give me a verbal yep. Awesome. Thank you. All right. Our focus for PeopleLabs FGU today is turnover. Something that you as a business begin to focus on after it occurs. And in 2015 there was no turnover. 2016 was a big growth year. And by the time that I came in, we were really focused on hiring. And that was, you know, we hired 121 people in 2016. And that obviously a big reason for focusing there. Once we turned over the new year and we began to see a few people leave, it's a natural next step to take a look at why people are leaving the organization. It was the very beginning of the first quarter that Sid and I started talking about it. And we began to do a bit of research and that's where we started exit interviews and some of the other pieces of research that you do as you start to lose your workforce and try to understand better why that is. So I'm going to take you through some background on what turnover means to me as a PeopleLabs leader. What it means to the business and what you'll find out when you start to go out and maybe do some research or take a look at what other people are reporting as turnover. There are a number of terms that you'll see turnover, termination, separation. These are all words for voluntary or involuntary loss of the team, of your team, your staff. Churn, something that is a term I've used for a long time. It's an internal focus. It's actually a positive or a healthy turnover and that's when someone either leaves a department to go somewhere else to take another position as a transfer or a promotion. It's essentially if you looked at everything as turnover when you lose someone out of the position that they're in, that would be the internal version of someone leaving. Attrition is when you lose someone due to a downsizing event or a right sizing event otherwise known as or someone retires. It's natural. It's a natural reduction in the business as well as a business decision. Most of the time you pull attrition out of your turnover because it is a business driven decision and what you're looking for in turnover is why people are either voluntarily or involuntarily leaving. Other terms that you'll recognize down the road, termination, separation, resignation when somebody voluntarily leaves to either go to another opportunity or for reasons that you want to dig into. Down size, right size, layoff, those are all terms that are similar and they are when you remove people and positions from the business because you've overhired because you have a loss of work, maybe a contract ended. Because your revenue drops and not something that can be recovered quickly but a drop that will then potentially disable us from paying the workforce. Or if you close a location. Reduction in workforce. It's another it's a sub term of that down size. That's when you eliminate positions you do not intend to replace that generally comes with a closing of a location when you reduce the workforce. You can have healthy and unhealthy turnover. Believe it or not, there really is healthy turnover, healthy terminations, terminations that are for poor performance when you lose or exit people from the business who are poor performers. You have, you've opened the path for people who are otherwise engaged in high performing and take accountability for their work. If you have ever been in a position I think we all have in in some job somewhere where you've had someone that appears to be not producing and yet they keep their job that's very frustrating. It can become infectious if it's not managed well, it's frustrating for not only peers but management, right, because we're not getting the work done that we need to get done we don't have the people or the engagement that we're looking to create a successful organization where our performance is costly to the business. Turnover is unhealthy. We worry about turnover it's costly. When you lose institutional knowledge for any period of time someone who leaves who was the only one who did their job that's why we try to look at ways to cross train the organization, or have someone as a understudy if you will. Missed deadlines projects suffer slower progress and missed deadlines can be costly to the business. Training costs, we have to train someone else to do the position whether it's a new hire or someone else in the in the organization. We know it adds stress and strain to peers who have to take up the slack while the position is vacant. It impacts morale and engagement. If people are worried about why people are leaving, then morale begins to to suffer it is essentially abstraction to the business. All right. Let's talk about the calculation. There are, when you start looking out on on Google at turnover you're going to find different formulas and different formulas paint different pictures. There are three different formulas when we were coming up with the right calculation for the organization. We went with a calculation that I brought to the business from a number of years that that I've used it and the reason I really pushed for this is it is a microscope approach. It digs down and looks at every person who was hired or who is here who had the opportunity to be terminated or to leave the organization. And therefore it really looks at every reason and and where other formulas use averages, you lose track of you can lose track of people that when your data set is not the same and you're not looking at apples and apples. Why people leave versus how many people left the numbers begin to get skewed and they don't pair up very well. And that's why I really pushed for this formula. The formula is what you need to get to create the formula is the starting headcount for your reporting period and reporting periods can vary. I'll talk about those in a little bit. The total number of hires in that same reporting period and the total number of terminations. I'm going to use the word terminations meaning termination separation turnover right all voluntary and involuntary leads. And that is a number that you want to separate out you want to have the total and you want to have the each individual type of termination to give you the most accurate data. You're going to divide that number of terminations into starting headcount plus the number of hires. So you have a starting number of 39 you add 121 hires throughout 2016. And you divide six into that to get your voluntary termination we had six people leave the organization those are the true numbers. We started the year of 2016 with 39 people. We added a total of 121. We had six people leave for voluntary reasons that gives us a a voluntary turnover of 3.75%. The other calculation here is the full year FY is full year, and it is all types of turnover. The next slide is a bit overwhelming for people who are not accustomed to the data and and this is something that Brittany and I have been working on creating. And it's got a lot of information on it. Happy to share it with you and I'll try to cover a quick review of it and then I think this is something that I want to continue to publish so that everyone is so that we keep it transparent right so that it's it's out there. So we looked at since we were already passed a full year of data that's a great data set to grab because it is your first component or your baseline for year over year turnover. So it's the first time that we've had that opportunity to gather that in 2016 as I said we had a full year of turnover of 9.38. I highlight voluntary because it's what we really what what your people ups team really focuses on the most there there's reasons to focus on each one and I'll tell you a little bit about why that is. But we looked at volunteers 3.75 and involuntary 5.63 and that's simply doing the formula that I gave you starting headcount of 39 the additions of 121 and then dividing that out by 15 would give you that full year. If you look at that voluntary number. We had four of the voluntary people that left six people we had four males and two females leave. We had and if you look at them we drill down as to what that means within that population so there were 35 males that started the year and 94 hired and four left giving us that 3.1. And same with females right female being higher because our population is is lower. The next section is by quarter so you have a full year that's great that's one component but you do need to drill down and drilling down gives us more detail of potential cycles or what happened in a particular quarter that we can go back and take a look at to avoid in the future. You'll see I have quarters 1234 we also have the FH is first half. So when you get the opportunity to measure a larger portion of your data, the first half of the year, you take that opportunity so that you can then project out what the full year turnover would look like. Then at the bottom out of the full year termination details we then break down a couple of different things we want to take a deeper dive into. Why are people leaving at the time that they leave we measure zero to three months three to six, six to 12 and one year. We're a young company. So these numbers are going to be bigger. And at the start right six to 12 is going to be probably your biggest category because we haven't been in business that long. The categories I'm more concerned about are the zero to three and the three to six because those tell us that our hiring decision might not have been a good one that we didn't completely convey what the work was going to be like or what the environment was going to be like. So those are the things that people ops focuses on to begin to figure out what can we do better and how you know what why did we lose that person that's why you have an exit interview. That's why we do stay interviews right because we want to understand what will engage people and and from that those numbers then the total 15 we had six leave as I said voluntary and nine involuntary a total of 12 males and three females left. A lot of information there. Popular metrics that we are going to begin to track or we have already started tracking. When you look at turnover you can look at monthly quarterly annualized a rolling average or a year of a year and we're going to look at a little bit of all of that as we go forward. Different measurements give you different different reasons for doing that monthly is when you find some kind of a trend that you are concerned that it's cyclical right did something happen in a particular month. That you that sticks out. That's a bit of drill you know the drill down is a little bit more than what we need right now we can do that but it doesn't tell us a lot. So we chose quarterly and we have the full year that we're looking at because we do quarterly we can do a rolling average really easily. We dig down into voluntary turnover as I said because it talks about engagement it talks about are your programs is your compensation. What what is it that keeps people here what is it that that potentially is allowing people to make the decision to walk away on a voluntary basis. We look at reasons specific to why people left the trends the patterns. We're going to take a look at tenure tenure talks about when people depart right and how long people stay you want that tenure to be high. We're too young of an organization at this point to really have a high tenure right the most tenure. Congratulations is Jacob Fosmar I think is the is our highest tenure and and then we have because of the hundred and twenty one hires we have a lot of very low tenure. We've got to balance that out we've got to stop growing as much as we do in order to get a really strong tenure number. But we can look at that tenure number over twenty seventeen and begin to see if it's if it's staying low then we've we potentially have something to take a look at. So again that that microscope just kind of goes to a different a different screen involuntary we look at involuntary because it's the quality of hire. If we're not hiring the quality of people that we need in the organization and we're actively managing those people who have poor performance out. Then we probably didn't consider something we then dig into looking at a profile of the people who left and the people who are very successful and why they are successful so we can start to compare and we can start to recruit for the skills that we need to maintain a high performing group of people. And we look at the cost of the company we can measure everything right how long does it take us to recruit a replacement how long does how much do in productivity do we lose when someone. Leads those are all costs to the company that talk about how much turnover costs it is said that turnover can cost you anywhere from fifty to four hundred percent of someone's salary depending on the type of position how hard it is to fill how much that position means to the business. One of the things so so I gave you some numbers and you say OK well John what does that mean to me I don't not in your business I don't know what that if it's good or bad are we high or are we low right so we went for comparables. This is one of the reasons it took me so long to actually get this information together and get it out to you because searched high and low believe it or not there wasn't a lot of comparables there certainly wasn't comparables that I was looking for for tech startups and I went digging. Again differences in formulas cause variations right so if you're looking at turnover be careful out there in the world because it can include attrition sometimes and not. It can be the three different formulas if you find a formula and you know that's what people are using but but we instead we use my formula my formula is probably going to be a little bit lower than an average turnover but it's in my opinion it's it's more exact. But it will be different so you have to take that into consideration there are three different links here that I gave you. The first article talks about how the tech industry has high turnover in general and it's got several points there that it talks about some companies and their tenure and showing and how how that's really down and I can't wait to begin to measure as we become more stable our tender so that we can compare. But if you look at these organizations they're much older than we are so it's a little shocking that their tenure is low but it shows that the technology arena has high turnover in general. The second article really does that has the same message it talks about 2016 and technology having high turnover and what that means to people ops what that means to to the company. And the third article breaks out voluntary and total across industry and if you look at that that charts the both charts we are lower than all other industries that you can compare yourself to utilities we don't compare to utilities at the lowest one across the board but we don't compare but we are annual turnover in both voluntary and total is lower than all of the other industries that are offered here as options. Again I'm looking for technology companies specifically tech startups I would like to I have some global numbers but again because we're a remote organization it makes us a little bit different. So I invite you to send me links anytime that you find something that you think might be good reading or a good comparison point for us. I will exit sharing now and I will go back here so I can see some chat. Questions. Jim do we have a lot of first time managers what are we doing to help them succeed great question Jim. Yes, we actually have a lot of first time leaders in the organization. And Abby and I are in the process of developing a managers forum where we're going to get people together that are managing people and we're going to talk about some of the challenges. Some of the normal people ops things that will offer our courses and discussions on giving and receiving feedback and and managing performance those kinds of things so we're we're gathering topics and we expect to start that from the second half of the summer to the fall. Hopefully that answers your question. Robert Spiker you mentioned how difficult it was to find comparable tech turnover data and tech companies as we are leading tech company in terms of openness and transparency. Why aren't we publishing our data because I just finished it so that this intention is to publish it on our on our site and then begin to be able to compare to others and and and I'm very proud of our turnover at this point. I wanted to make sure it was stable I wanted to make sure I understood the information want to make sure that that we had vetted it well so we will publish that I don't have a problem at all with that. Mitchell have you seen any trends from people leaving voluntary during exit interviews of the of the six that we have a voluntary terms I don't have a trend yet. There there people leave for and there always will be you can dig down but what I find Mitchell is if you react too quickly you're reacting to a specific set and then you create an issue because you start to focus on something that brings maybe that to everybody's attention where it wasn't really an issue but for one person so no I'm not finding things you look for is it a management issue right what is the the what is the saying people leave managers not companies well you know you look at what you know what that manager did and why that person left and it's not always a true statement and in most cases it's not a true statement on our end. And that's a great thing right we have great great management team. And in front of me I don't have the data the other reasons but no I did not find any trends. Are there any other questions. This can be a really controversial topic it can be a an exciting topic it's certainly one that we are really focused on in people ops and we'll continue to focus on. And I promise you that as part of our reviews going forward at least on a quarterly basis will report out to you what the turnover is and Robert to your point. I have no issue reporting out what our turnover is and what we're doing to to focus in on the areas that we need to. All right. Any other questions. Thanks very much for joining today. And we'll be back to you in a couple of weeks with another people ops update.