Turnover rate calculations are generally done on a variety of time periods, most typically monthly, quarterly, and annually. The Bureau of Labor Statistics reported an average turnover rate of 57.3% in 2021, a figure that further supports the importance of managing turnover. Analyzed alongside other key HR metrics in an effective reporting culture, turnover rates can also lead to analyses of the hiring and training processes (and costs) that result from turnover. It offers valuable insights for leadership, process improvement, and overall company culture. In order to effectively manage and reduce the turnover rate, it's first important to understand how often employees leave your company. And, while it's virtually impossible to prevent turnover entirely, it is certainly something that any employer can help reduce. Turnover rates typically do not account for internal transfers or promotions.īecause hiring and training are expensive, it's generally accepted that the lower the turnover rate, the better. poor management, lack of growth opportunities, toxic work culture, etc.) While employees turnover voluntarily, there are a number of factors that you can control to reduce voluntary turnover (e.g. Voluntary turnover: when an employee voluntarily leaves an organization (for any number of reasons).

Involuntary turnover: when an employee is terminated from a position by an employer.

At a high level, there are two types of turnover: Other factors, like the resources required to maintain the responsibilities of vacant positions, introduce other difficulties. Employee turnover can introduce a tremendous financial burden to companies, especially smaller ones, because of the resources required to hire and train replacements. What is a turnover rate? We’re glad you asked.Įmployee turnover rates indicate the percentage of employees who leave a company over a given time period and which often require employers to find a replacement.Įmployees turnover all the time, and are doing so at record highs now.

Turnover number