What Is Employee Turnover?

What Is Employee Turnover?

1 Answer

  1. Employee turnover refers to the number or percentage of workers who leave an organization during a specific period of time and are replaced by new employees. Any time an employee leaves your company, for any reason, they are called a turnover or separation. Employee turnover is calculated by dividing separations by the total staff: employee turnover = number of separations / average number of employees. Voluntary turnover occurs when an employee chooses to leave i.e. quits or resigns, and involuntary turnover occurs when the employer makes the decision for the employee to leave i.e. is fired. It is the loss of talent in the workplace over time. Valuable employees leaving your business will have a bigger impact than if lazy, unproductive staff leave. If your labour turnover is higher than the industry average, you might have to check what’s the issue. There will be times where employees leave the company, and so a goal of zero percent turnover is a matter of disappointment. A goal might be to keep turnover to a level no higher than the average for industry.
    Also, employee turnover is generally mentioned in a negative term. This is because of the lose of high costs related to high turnover rates.

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