Employee turnover affects many of the company’s business processes. If the rate is too high, it leads to additional costs and time spent on finding and training new employees. Therefore, turnover needs to be controlled. We tell you what formula to use to calculate employee turnover and how to reduce it if the rate is too high.
What is employee turnover?
Employee turnover is the number of employees who quit in any company. Employee turnover can never be zero, since some employees periodically retire, some employees are transferred to other departments or fired, and some quit on their own. A high employee turnover rate in an organization is a signal that something is going wrong.
Imagine a small company. Over the last three months, five c level contact list out of ten sales managers decide to leave, and you need to find new ones to replace them. More than half of the employees left the department in a short period of time, this is a high turnover of personnel.
This can happen for various reasons: employees don’t like their salary, team, manager, schedule or working conditions. In this case, the HR department should reduce staff turnover, but managers of other departments help them.
What is the danger of fluidity:
1. The company’s expenses increase. Every time an employee leaves the company, you need to find and hire a new employee. This will require time and motorbike from a trimmer what to pay money: paying for the work of the HR manager and posting the vacancy. Then you need to train the newcomer in the intricacies of working in your company, and this also takes time and money.
2. The business loses experienced employees. Sometimes people come to the company without experience, they are trained or they gain knowledge themselves, become professionals, and then leave. In this situation, the business needs to find a worthy replacement, and this is not so easy. It is necessary to spend time on the adaptation of new team members, and in the meantime the company is left without strong specialists. To avoid this, it is necessary to develop a strategy for retaining valuable employees.
What is the turnover rate and how to calculate it
The employee turnover rate helps to understand the level b2c fax of employees leaving the company. The indicator is usually calculated for a year or a quarter.
Typically, when calculating employee turnover, you need to include those who were fired, those who quit, and those who retired. Let’s say a company has an average of 520 employees. Over the past year, 14 employees left, three were fired. And two retired, for a total of 19 people leaving the company.
