Employee turnover
Workforce Management Glossary
Employee turnover
What is employee turnover?
Employee turnover is defined as the number of workers who depart a company over a predetermined period of time. Turnover encompasses both voluntary and involuntary departures.
Voluntary exits are used to describe employees who choose to leave the company. Involuntary turnover refers to those who are fired or laid off by the company’s management team.
How does employee turnover rates impact businesses?
High employee turnover rates can negatively impact business operations in a variety of different ways. One key business measure impacted by turnover rates is that of productivity. With a revolving door of workers, tasks may be missed or employees may have trouble meeting deadlines.
It is also important to note that turnover rates are expensive. In order to replace the departing employee, organisations might need to offer new employees a higher salary package in the wake of time or workload pressures.
What are some of the ways to reduce employee turnover?
Key to reducing employee turnover is fostering a workplace culture that promotes open and honest conversation along with high employee morale. By nurturing relationships with workers, they feel more comfortable to talk through issues before they become roadblocks.
With Roubler’s workforce management and payroll software, organisations have real insights into business facets such as the amount of time-off requests being submitted. This is important because high leave rates could be an indicator that an employee is unhappy.