Employee turnover is the percentage of workers who leave an organization over a specified period, typically a month or a year, and need to be replaced. It encompasses all departures, whether an employee quits, gets fired, or retires.

• Voluntary Turnover: The employee chooses to leave (e.g., accepting another job offer, returning to school, personal reasons).

• Involuntary Turnover: The employer decides to terminate the employment (e.g., lay-offs, performance issues, downsizing).

• Desirable vs. Undesirable: Desirable turnover occurs when low-performing staff leave; undesirable turnover happens when top talent exits.

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To measure the turnover rate for a given timeframe:

Turnover Rate = Total Separations divided by Average Number of Employees multiplied by 100

Example: If a company starts the year with 100 employees, ends with 110 (average of 105), and loses 10 employees during that period:

Turnover Rate = 10 divided by 105 multiplied by 100 = 9.52%

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