Turnover rate is the percentage of employees who leave an organization during a given period of time. In most cases, turnover rate is calculated every year.
It's the beginning of a new year, and you know what that means: it's time for your annual company-wide turnover analysis. You've been with the company for years, and you've seen firsthand how each new year brings changes. Some employees move on to new opportunities, while others are promoted or transferred to new roles.
This year, you want to take a closer look at the turnover data to see if there are any trends that you can identify. You'll also be looking at ways to reduce turnover in the coming year.
Turnover is the percentage of employees who leave an organization during a given period of time. The turnover rate is usually calculated on a yearly basis.
Why is turnover important?
Turnover is important because it can have a significant impact on a company's bottom line. High turnover rates can lead to increased costs, decreased productivity, and a loss of institutional knowledge.
There are two main types of turnover: voluntary and involuntary.
Voluntary turnover is when an employee chooses to leave an organization, usually because they've accepted a position at another company. Involuntary turnover is when an employee is let go by the organization, usually for performance reasons.
The most common reasons for turnover are:
High turnover can have a number of consequences, including:
There are a number of ways to reduce turnover, including:
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