Staff Turnover Rate
Introduction
In human resources, turnover is the act of replacing an employee with a new employee. Separations between organizations and employees can consist of termination, retirement, death, inter-organizational transfers, and resignations.[1] An organization's turnover is measured as a percentage rate, which is known as its turnover rate. The turnover rate is the percentage of employees in a workforce who leave during a certain period of time. Organizations and industries as a whole measure their turnover rate over a fiscal or calendar year. Too much turnover is not only costly, but it can also give an organization a bad reputation.[1][2].
If an employer is said to have a high turnover rate relative to its competitors "Competition (General)"), it means that employees at that company have a shorter average tenure than those at other companies in the same industry. High turnover can be detrimental to a company's productivity if skilled workers leave often and the worker population contains a high percentage of newbies. Companies typically track turnover internally across departments, divisions, or other demographic groups, such as turnover of women versus men. Additionally, companies track voluntary turnover more accurately by presenting surveys to employees who are let go, thereby identifying specific reasons why they may choose to quit. Many organizations have found that turnover is significantly reduced when issues affecting employees are addressed immediately and professionally. Companies try to reduce employee turnover rates by offering benefits such as paid sick days, paid holidays, and flexible schedules.[3].
Terminologies
Employee attrition and employee turnover refer to an employee quitting a job and are often used synonymously. For the first two terms, the difference is due to context, that is, the reasons why the employee left. While attrition is usually voluntary or natural, such as retirement or resignation, turnover refers to both voluntary and involuntary departures. While turnover includes employees who leave of their own volition, it also refers to employees who are laid off or involuntarily terminated. In the case of turnover, the role of human resources is to replace employees, while positions vacated due to attrition may remain vacant. Employee turnover refers to the total number of attrition and turnover cases combined.