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Resource turnover rate

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What is Resource Turnover Rate?

Resource Turnover Rate (RTR) is a metric that quantifies the frequency at which resources, such as employees or assets, are replaced or turnover within an organization over a specific period.

In the context of Professional Service Automation (PSA), it measures how efficiently resources are managed, allocated, and utilized in service delivery.

Importance of Resource Turnover Rate

Understanding RTR is crucial for several reasons:

1. Resource Optimization: A high RTR might indicate inefficiencies in resource allocation or management. By monitoring this rate, organizations can identify areas for improvement in their resource management strategies.

2. Cost Implications: Regularly replacing resources can be costly. By reducing unnecessary turnovers, companies can save on recruitment, training, and other associated costs.

3. Service Quality: In PSA, consistent service delivery is paramount. A high RTR can disrupt service continuity, affecting client satisfaction.

Resource turnover rate

Why Resource turnover rate is so important?

Calculating Resource Turnover Rate


Resource Turnover Rate (RTR) = (Number of Resources Replaced/Average Total Resources) × 100


Imagine a PSA firm started the year with 50 employees, ended with 60, and replaced 10 during the year. The average total resources would be 55 (i.e., (50+60)/2). Using the formula:


This means there was an 18.18% turnover rate for the year.

Resource Turnover Rate vs Other Metrics

While RTR is essential, it’s one of many metrics PSA firms should monitor. For instance:

1. Resource Utilization Rate: This measures how efficiently resources are being used. A high RTR combined with low utilization might indicate issues with resource allocation.

2. Employee Satisfaction: High RTR could be a result of low employee satisfaction. Tools like Employee 360 can provide insights into employee sentiments.

Metric Description Use/Application
Resource Turnover Rate Measures the rate at which employees leave or are replaced within a professional service organization. It helps assess workforce stability and the need for recruitment or retention strategies. HR and talent management; assessing team stability.
Billable Utilization Measures the percentage of time that employees spend on billable tasks, such as client work, compared to their total work hours. It indicates how effectively resources are being used to generate revenue. Project and resource management; revenue optimization.
Project Profitability Evaluates the profitability of individual projects by comparing the revenue generated to the costs incurred. It helps identify high- and low-performing projects. Financial analysis; project selection and prioritization.
Customer Satisfaction Reflects the level of satisfaction among clients and customers. It is often measured through surveys and feedback and provides insights into the quality of service delivery. Customer relationship management; client retention.

Application of Resource Turnover Rate

RTR has various applications:

1. Strategic Planning: By understanding turnover trends, firms can better plan for recruitment and training.

2. Performance Benchmarking: Comparing RTR with industry standards can provide insights into a firm’s competitive standing.

3. Client Relations: Maintaining a stable team can foster better client relationships, as clients often prefer consistency in service delivery.

Ready to Optimize Your Resource Turnover Rate?

KEBS, a leading PSA software, offers tools to help firms manage and optimize their resources. With KEBS resource management software, firms can efficiently allocate resources, reducing the chances of burnout and turnover.

Tools like Employee 360 allow firms to gather feedback, addressing concerns before they lead to turnover. KEBS reporting tools provide insights into resource performance, helping firms make informed decisions.

KEBS HR Dashboard

Ready to optimize your Resource Turnover Rate? Dive deeper into KEBS offerings and see how it can transform your resource management. Contact us for more details or request a demo today!

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