Overview of Employee Turnover Rate
Employee turnover rate is the rate at which employees leave a company throughout the year. It is a metric used by employers to measure how quickly employees types of leave and their organization, and how well the organization is doing in terms of staff retention and employee engagement. This rate is also sometimes referred to as the staff turnover rate or the personnel turnover rate. It’s important to understand the employee turnover of your organization as it can have a big impact on the quality of services provided and overall productivity.
Understanding Employee Turnover Rate
Employee turnover rate is calculated by taking the number of employees who have left the company in a certain period of time, and dividing it by the average number of employees during that same period. The result of this equation is then multiplied by 100 to determine the percentage of Voluntary Turnover Rate. For example: if 10 employees left a company with an average of 200 employees over a two month period, then the employee turnover is 5% for that period of time.
Importance of Measuring Turnover
Measuring turnover is an important task for employers as it can provide insight into the efficiency of a company’s hiring and employee retention practices. By understanding the employee turnover, employers can make data-driven decisions to reduce turnover, improve employee engagement, and maintain the overall health of the organization.
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FAQs
What is the employee turnover rate example?
An example of employee turnover rate would be a company that had 10 employees leave in a two month period, with an average of 200 employees. This would result in a turnover rate of 5%.
How to calculate turnover?
Calculating turnover is fairly straightforward: simply divide the number of employees who have left the company by the average number of employees, and multiply the result by 100 to determine the percentage of turnover.
What is considered a high turnover rate?
A high turnover rate generally refers to any rate that is above the industry average. For example, if the industry average for employee turnover is 4%, any rate that is greater than 4% would be considered high.
Also, See: Total Remuneration | Employee Turnover
