Employee Turnover Rate

Employee turnover rate is a measure of how often employees leave a company and need to be replaced. It is calculated as the percentage of employees who leave a company during a given time period, typically a year, divided by the total number of employees in the organization.

There are two main types of turnover rates: voluntary and involuntary. Voluntary turnover occurs when an employee chooses to leave the company, either to pursue other career opportunities or for personal reasons. Involuntary turnover occurs when an employee is terminated or laid off by the company.

Employee turnover can have both positive and negative effects on a company. On the one hand, turnover can be costly for companies, as they need to spend time and money recruiting and training new employees. High turnover rates can also negatively impact employee morale and productivity. On the other hand, turnover can also bring new talent and fresh perspectives to a company, and can help weed out underperforming employees.

To address high turnover rates, companies may need to examine their compensation and benefits packages, work culture and environment, management practices, and opportunities for professional growth and advancement. Regular employee surveys and feedback sessions can also help identify issues and areas for improvement.