What is Employee Turnover?
Employee turnover refers to a company losing its employees and filling the roles with new staff. A high turnover rate means multiple employees regularly leave the company, whereas a low rate is when few employees leave. Most companies actively aim for a low employee turnover rate.
From retirement to resignation, employee turnover includes all reasons for a staff member to separate from the company. Some reasons might reflect on the company culture, whereas others have nothing to do with the company. If someone leaves because they didn’t feel welcome as a new staff member, the company needs to improve this to prevent a higher turnover rate. The most common reasons for frequent resignations include low pay, few benefits, flexibility, and better opportunities elsewhere.
HR does its best to lower employee turnover, as the process of attracting, interviewing, and onboarding candidates is a lengthy one. Plus, a higher turnover rate means fewer staff members stick around long enough to become experienced and loyal to the company.
It is common for businesses to use tools to monitor their employee turnover, especially when they have lots of staff to track. By tracking the rates over time, companies gain insights into the reasons behind staff departures. By knowing more about the reasons for a high employee turnover, companies can alter their methods to ensure more staff stay working for the business, creating a greater company culture overall.
For Your Reference – Related Terms
Employee retention, turnover rate, employee benefits