AVERAGE TURNOVER RATE HOW TO

AVERAGE TURNOVER RATE HOW TO

Read more: Estimating the Cost of High Employee Turnover How to calculate turnover rates

Providing insight into the effectiveness of your talent acquisition strategy.Highlighting employee separation costs such as unemployment compensation.Identifying internal opportunities for employee satisfaction.Uncovering data about the resources you spend hiring and training employees.Regularly completing an employee turnover calculation provides numerous advantages, including:

Turnover calculations are a valuable tool for HR that can provide insight into why employees may be leaving, such as issues with management, workplace culture and development opportunities. That’s not including indirect costs or consequences, such as lost revenue, reduced morale, overburdened and understaffed employees and negative impacts on productivity or customer experiences. With reports suggesting that direct replacement costs can reach as high as 60% of an employee’s annual salary, replacing employees is much more costly than retaining them.

Related: 10 Recruiting Strategies for Hiring Great Employees Why employee turnover is importantĪlthough you’ll have to manage inevitable employee turnover due to retirement, relocation or similar factors, high turnover rates can have greater consequences and implications for your business. Although turnover usually measures the total number of workers who leave, you can also use it to measure other categories such as demographic groups, voluntary or involuntary separations, departments and more. Usually expressed as a percentage, the employee turnover rate measures the number of employees who leave an organization over a set period.

Average turnover rate