Employee turnover refers to the rate at which employees leave a company and are replaced by new hires. It is a critical metric that helps businesses understand workforce stability and plan their recruitment and retention strategies effectively. This measure fits within the broader employee lifecycle by highlighting the flow of talent into and out of an organisation. For HR professionals and employers, managing turnover is essential to maintain productivity and reduce costs.
Voluntary turnover occurs when employees leave on their own accord, such as through resignation. Involuntary turnover happens when employees are let go, whether by dismissal or redundancy. Some turnover can be functional and beneficial, while dysfunctional turnover may harm an organisation’s stability and performance.
High turnover can signal issues like low job satisfaction or ineffective management. It also impacts recruitment costs, training time, and lost productivity. Understanding turnover helps employers identify opportunities to improve engagement and retention, which are key to sustaining a stable workforce.
