What is Employee Turnover?

Simply put, employee turnover, or employee turnover rate, is the measurement of the number of employees who leave an organization during a specified time period, typically one year.

While an organization usually measures the total number of employees who leave, turnover can also apply to subcategories within an organization like individual departments or sections, or professions.

How do you calculate employee turnover?

Divide the sum total of the number of employees that leave within a specific period of time by the average number of employees that work within the selected time frame. Multiply that number by 100 to calculate the employee turnover rate.

For example, if you have an average of 110 employees over a year’s time and 2 employees leave, your turnover rate would be around 1.8%.

The equation would read as follows: (2/110)*100 = 1.8

NB: Do not include temporary hires in either factor of the equation.

Voluntary vs involuntary turnover

Voluntary turnover is any instance in which an employee actively chooses to leave. This can happen as a result of better job opportunities elsewhere, conflict within the workplace, disengagement, and more.

Involuntary turnover is when an employer chooses to terminate an employee or remove them permanently from the group in question, possibly because of poor performance, toxic behavior, or other reasons.

Is turnover good or bad?

Turnover is natural for any organization.

While low employee turnover is the goal for most organizations, what determines low vs. high turnover is how actual turnover compares to a typical or expected rate, which can change depending on the industry, job type, company size, region, and more—and that rate is very rarely zero.

What leads to turnover?

What is the cost of employee turnover?

How do you manage employee turnover?

Managing employee turnover or preventing employees from leaving can be difficult for organizations. However, these are some measures that can be put in place to encourage employees to stay.

I have highlighted six ways in which employee retention can be achieved.

1. Hire the right talent

When you hire employees who have the right skills, but also align with the cultural and behavioral beliefs of your organization, you may be more successful.

One tactic is to ask behavioral interview questions to identify a candidate’s personality and character.

For example, you can ask an interviewee how they handled a sudden change in their routine and what they learned from it. Their answer can give you valuable insight into their personality.

2. Encourage Retention Early On

Many experts believe that retention efforts should begin on an employee’s first day of employment.

A benchmark for successful onboarding should be giving new employees a clear understanding of the company’s mission and how they can help add value to the organization.

3. Recognize and Reward Employees

Happy employees are on average more productive than unhappy employees.

Creating a positive work environment allows employees to thrive, feel acknowledged, and stay motivated.

4. Identify a Clear Career Path

Don’t allow your employees to feel like their position is stagnant. Otherwise, they may start to pursue other opportunities. Encourage managers to schedule regular meetings with their team to discuss their goals and how the company can help them achieve their goals.

5. Encourage a Healthy Work-Life Balance

Offering unique perks like unlimited employee maternity and paternity leave for the first year of a child’s life or a stipend for annual travel may help employers stand out.

The ability to utilize flexible work schedules and environments can also prove to be beneficial.

6. Create Learning and Development Programs

Companies can establish clear learning and development protocols and give their employees the opportunity to pursue areas that interest them. For example, offer a budget to attend training annually.

For these programs to be successful, you need to ensure the criteria are clear, fair, and widely understood by employees. If you’d like to improve your skills as an HR professional, focusing on your education might be the answer.

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