Employee Turnover

What is Employee Turnover?

Employee turnover refers to the total number of workers who leave a company over a certain time. It is an indicator of a company’s work culture, effectiveness of hiring policies, and employee management. Employee turnover rate is a crucial metric to measure the human resources department and how effective their management is. Employee turnover is broken down into two types: voluntary, where an individual chooses to leave the company, and involuntary, where an individual is terminated or laid off.

Why does employee turnover matter? 

Employee turnover matters because it is more expensive to replace an employee than to retain them. Restarting the recruitment process takes time and money, and if there is a high turnover rate, extra expenses will have to be used for recruiting a new employee. Furthermore, with constant high turnover, there will be lower employee morale, a weakened company culture, a shortage of skilled employees in the workplace, and a loss in team synergy. 

3 ways to lower employee turnover rates:

1. Hire the right people: Recruiters should be clear and upfront about a company’s culture and ensure that they are hiring the right person for the role. It is important to invest time in getting to know a candidate before hiring them. 
2. Competitive salaries and benefits: Pay and work benefits are one of the greatest motivators for any employee. Companies should keep up with the market salary rate to retain top talent at their company.
3. Reward and recognize employees: A simple “thank you” message can go a long way. Make sure to acknowledge all the hard work that employees put into their jobs to show that they are cared for.