Employee Turnover

Employee Turnover Definition

Employee turnover refers to the rate at which employees leave a company and are replaced by new hires. It is a key metric for HR professionals to track, as high turnover can be costly and disruptive to a company’s operations.¬†

Employee Turnover Best Practices 

Best Practices for managing employee turnover include implementing effective recruitment and onboarding processes, providing opportunities for professional development and advancement, and creating a positive work culture that fosters employee satisfaction and loyalty.

How Does Employee Turnover Work?

Employee turnover is typically calculated by dividing the number of employees who have left the company by the average number of employees in the organization during a specific time period, and then multiplying by 100 to get a percentage. For example, if a company had 10 employees leave in a year, and the average number of employees during that time was 100, the turnover rate would be 10%.

Key features of Employee Turnover

It includes voluntary turnover, which occurs when employees choose to leave the company, and involuntary turnover, which happens when employees are terminated or laid off. Understanding the reasons for turnover, such as lack of opportunities for advancement, poor management, or low compensation, can help HR professionals develop strategies to reduce turnover and improve employee retention.


High turnover can result in increased recruitment and training costs, decreased productivity, and a negative impact on company morale and culture.

HR professionals can reduce turnover by implementing retention strategies such as offering competitive salaries and benefits, providing opportunities for career growth, and creating a positive work environment.

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