Most experts agree there are two types of turnover. Often labeled “Attrition” the first type of turnover refers to expected job changes due to things like retirement or moving. “Regrettable turnover” refers to the loss of an employee the organization would rather keep. This “quitting” can be for a variety of reasons—better work conditions, better pay, better job, etc. Most often, however, the root cause is traceable to the organization the person is leaving. After all, very few people look for another job when they are fully happy in their current position.
Calculating Turnover
Calculating your turnover rate is straightforward and relatively easy:
Number of Separations per Year ÷ Average Total Number of Employees = Turnover Rate
Knowing an appropriate turnover rate for your industry and your company is much more difficult and variable. Benchmarking year over year levels and against similar organizations can help companies understand their current position.
Regardless of your current turnover rate, paying attention to retention over the next few years will become increasingly important.
Ready to discuss plans for improving turnover? Let’s talk.