What is employee turnover?
Posted: Thu Feb 13, 2025 5:42 am
Employee turnover affects many of the company's business processes. If the rate is too high, it leads to additional costs and time spent on finding and training new employees. Therefore, turnover needs to be controlled. We tell you what formula to use to calculate employee turnover and how to reduce it if the rate is too high.
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Employee turnover is the number of employees who quit their jobs in any company. Employee turnover can never be zero, as some employees periodically retire, some employees are transferred to other departments or fired, and some quit on their own. A high employee turnover rate in an organization is a signal that something is wrong.
Imagine a small company. Over the last three months, five out of ten sales managers uruguay phone number list decide to leave, and you need to find new ones to replace them. More than half of the employees left the department in a short period of time, this is a high turnover of personnel.
This can happen for various reasons: employees don't like their salary, team, manager, schedule or working conditions. In this case, the HR department should reduce staff turnover, but managers of other departments help them.
What is the danger of fluidity:
1. The company's expenses increase. Every time an employee leaves the company, you need to find and hire a new employee. This will require time and money: paying for the work of the HR manager and posting the vacancy. Then you need to train the newcomer in the intricacies of working in your company, and this also takes time and money.
2. The business loses experienced employees. Sometimes people come to the company without experience, they are trained or they gain knowledge themselves, become professionals, and then leave. In this situation, the business needs to find a worthy replacement, and this is not so easy. It is necessary to spend time on the adaptation of new team members, and in the meantime the company is left without strong specialists. To avoid this, it is necessary to develop a strategy for retaining valuable employees.
3. Experienced employees leave for competitors. It also happens that employees study all the business processes of the company, gain experience, and then are lured away by competitors. The competitors' team becomes stronger, and yours — weaker. And again, you need to spend time and money to select candidates for the position. But this can lead to more serious problems. For example, a departed expert can steal the client base.
4. Team productivity decreases. Frequent layoffs contribute to an unstable work environment and a lack of confidence among the remaining employees. People begin to doubt the future of the company, which can negatively affect their motivation and efficiency.
5. The quality of work deteriorates. Frequent changes of workers prevent the formation of a stable and well-coordinated team. This can lead to conflicts, errors, personnel changes, which negatively affects the work process. Therefore, control of turnover is important.
You can learn more about team management and business development in the Telegram channel “Businessovochnaya” . We invite you to subscribe to regularly receive useful materials for entrepreneurs.
What is the turnover rate and how to calculate it
The employee turnover rate helps to understand the level of employees leaving the company. The indicator is usually calculated for a year or a quarter.
Typically, when calculating turnover, you need to include those who were fired, those who quit, and those who retired. Let's say a company has an average of 520 employees. Over the past year, 14 employees left, three were fired, and two retired, for a total of 19 people leaving the company.
You are reading the magazine Compass - a messenger for effective and safe teamwork.
Learn more about Compass
Employee turnover is the number of employees who quit their jobs in any company. Employee turnover can never be zero, as some employees periodically retire, some employees are transferred to other departments or fired, and some quit on their own. A high employee turnover rate in an organization is a signal that something is wrong.
Imagine a small company. Over the last three months, five out of ten sales managers uruguay phone number list decide to leave, and you need to find new ones to replace them. More than half of the employees left the department in a short period of time, this is a high turnover of personnel.
This can happen for various reasons: employees don't like their salary, team, manager, schedule or working conditions. In this case, the HR department should reduce staff turnover, but managers of other departments help them.
What is the danger of fluidity:
1. The company's expenses increase. Every time an employee leaves the company, you need to find and hire a new employee. This will require time and money: paying for the work of the HR manager and posting the vacancy. Then you need to train the newcomer in the intricacies of working in your company, and this also takes time and money.
2. The business loses experienced employees. Sometimes people come to the company without experience, they are trained or they gain knowledge themselves, become professionals, and then leave. In this situation, the business needs to find a worthy replacement, and this is not so easy. It is necessary to spend time on the adaptation of new team members, and in the meantime the company is left without strong specialists. To avoid this, it is necessary to develop a strategy for retaining valuable employees.
3. Experienced employees leave for competitors. It also happens that employees study all the business processes of the company, gain experience, and then are lured away by competitors. The competitors' team becomes stronger, and yours — weaker. And again, you need to spend time and money to select candidates for the position. But this can lead to more serious problems. For example, a departed expert can steal the client base.
4. Team productivity decreases. Frequent layoffs contribute to an unstable work environment and a lack of confidence among the remaining employees. People begin to doubt the future of the company, which can negatively affect their motivation and efficiency.
5. The quality of work deteriorates. Frequent changes of workers prevent the formation of a stable and well-coordinated team. This can lead to conflicts, errors, personnel changes, which negatively affects the work process. Therefore, control of turnover is important.
You can learn more about team management and business development in the Telegram channel “Businessovochnaya” . We invite you to subscribe to regularly receive useful materials for entrepreneurs.
What is the turnover rate and how to calculate it
The employee turnover rate helps to understand the level of employees leaving the company. The indicator is usually calculated for a year or a quarter.
Typically, when calculating turnover, you need to include those who were fired, those who quit, and those who retired. Let's say a company has an average of 520 employees. Over the past year, 14 employees left, three were fired, and two retired, for a total of 19 people leaving the company.