Employee turnover is the rate at which an organization experiences a change in its personnel. High employee turnover can be costly for an organization. When turnover is high, it can indicate that there are issues with the organization's culture, pay, or benefits. High turnover can also lead to a loss in productivity and knowledge.
The primary reason for employee turnover is dissatisfaction with their job. This could be due to a lack of appreciation from supervisors, feeling underpaid, not having enough opportunities for advancement, or not feeling supported by their coworkers. Other reasons for employee turnover include conflict between coworkers, work-life balance issues, and a lack of recognition from supervisors. It's important for businesses to identify the root causes of employee dissatisfaction in order to address these issues and retain their employees.
Calculating employee turnover begins with gathering the total number of employees that were part of your staff within a given period (usually one year). This is followed by determining how many left in that same period, and then dividing this by the original number of employees. The result will give you the employee turnover rate which is usually expressed as a percentage. For example, if 25% of your staff left in one year, then your calculation would be: 25% = (Number of Employees Who Left / Total Number of Employees) × 100%.
Once you have determined the employee turnover rate for your business, it’s important to track it over time so that you can identify any trends or changes in its direction. Comparing this rate against industry benchmarks can also help you determine whether your organization is performing better or worse than other similar businesses when it comes to retaining its staff.
There are several strategies that employers can use to reduce employee turnover. Firstly, make sure that employees are fairly compensated for their work by offering competitive wages and benefits packages that meet their needs. Secondly, ensure that employees feel valued by providing recognition and rewards when they do a good job. Thirdly, create an environment where employees feel comfortable sharing their ideas and suggestions with management so they feel heard and appreciated. Finally, give employees the opportunity to grow within the company by providing training and career development programs that allow them to gain new skills or move up within the organization.