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EMPLOYEE TURNOVER
IN THE FEDERAL GOVERNMENT
 
 
February 1986
 
 
NOTES

Unless otherwise indicated, all years referred to in this report are fiscal years.

Turnover rates throughout the report do not cover the Senior Executive Service.
 
 
PREFACE

Employee turnover has important consequences for an organization--among others, cost--and the amount of turnover can serve as an indication to management of the appropriateness of personnel policies. The Office of Personnel Management would like to see federal turnover data used to help evaluate the adequacy of compensation for federal employees.

This special study, requested by both the House Budget Committee and its Task Force on Income Security, examines the nature and extent of turnover among federal workers. It also sets out comparisons of federal and private-sector turnover rates and describes issues associated with using turnover rates to evaluate compensation. In keeping with the Congressional Budget Office's (CBO's) mandate to provide objective and nonpartisan analysis, the report makes no recommendations.

R. Mark Musell of CBO's Intergovernmental Relations Division prepared the report under the supervision of Stanley L. Greigg and Earl Armbrust. Gregory Paradiso provided valuable research and data processing support. Many individuals provided advice, information, and comments, and the author would especially like to acknowledge CBO's Robert W. Hartman and Bruce Vavrichek. The author also owes special thanks to Sherry Snyder, who edited the report, and to Mary V. Braxton who typed the many drafts and prepared the report for publication.
 

Rudolph G. Penner
Director
February 1986
 
 

CONTENTS
 

SUMMARY

CHAPTER I. INTRODUCTION

CHAPTER II. COMPARISON OF FEDERAL AND NONFEDERAL TURNOVER RATES

CHAPTER III. QUIT RATES AS A BASIS FOR EVALUATING COMPENSATION

 
SUMMARY TABLE  AVERAGE ANNUAL RATES FOR QUITS AND TRANSFERS FOR THE FULL-TIME, PERMANENT, GENERAL SCHEDULE WORKFORCE, BY OCCUPATION AND YEARS OF SERVICE, 1984
TABLE 1.  AVERAGE ANNUAL TURNOVER RATES FOR THE FULL-TIME, PERMANENT WORKFORCE, BY PAY SCHEDULE, AGENCY, AND TYPE OF TURNOVER, 1984
TABLE 2.  AVERAGE ANNUAL RATES FOR QUITS AND TRANSFERS FOR THE FULL-TIME, PERMANENT, GENERAL SCHEDULE WORKFORCE, BY OCCUPATION AND YEARS OF SERVICE, 1984
TABLE 3.  AVERAGE ANNUAL RATES FOR QUITS AND TRANSFERS FOR FULL-TIME EMPLOYEES RECEIVING MERIT PAY, BY AGENCY AND PERFORMANCE RATING, 1984
TABLE 4.  COMPARISON OF QUIT RATES FOR WHITE-COLLAR WORKERS IN FEDERAL AND SELECTED PRIVATE-SECTOR ORGANIZATIONS, 1984
TABLE 5.  COMPARISON OF QUIT RATES FOR WHITE-COLLAR WORKERS IN FEDERAL AND SELECTED PRIVATE-SECTOR ORGANIZATIONS, WITH FEDERAL RATES ADJUSTED TO INCLUDE TRANSFERS, 1984
TABLE 6.  AGE DISTRIBUTION OF FEDERAL AND PRIVATE-SECTOR WHITE-COLLAR WORKERS, 1984
TABLE 7.  COMPARISON OF QUIT RATES FOR FEDERAL AND STATE GOVERNMENTS, 1984
TABLE 8.  RECRUITMENT AND PLACEMENT COSTS FOR FILLING SELECTED FEDERAL POSITION VACANCIES, 1985
 
 
FIGURE 1.  CHANGE IN QUIT RATES FOR FULL-TIME, PERMANENT FEDERAL EMPLOYEES AND IN U.S. UNEMPLOYMENT RATES, 1975-1984


 
SUMMARY

How extensive is employee turnover in the federal government, and how does it compare with that experienced by other organizations? Managers ask these questions because the rate at which workers leave might tell them something about employee reaction to compensation and other personnel policies. Negative consequences of turnover include the time and money required to recruit and train replacements. On the positive side, turnover can facilitate the introduction of new ways of doing things. The question of turnover in government holds special significance, because the Office of Personnel Management (0PM) has recommended greater use of turnover rates to help evaluate federal pay.

This document is available in its entirety in PDF.