Connect with us

Business

What Is Employee Turnover?

What Is Employee Turnover?

Employee turnover can often be misunderstood, it is actually very simple, it is the rate in which employees leave a company and have to be replaced. It widely accepted that a certain amount of employee turnover within a company is unavoidable, but a rate too high can reflect badly upon the company. For example you often get employees retiring, moving away, or having time off to have a family. It must be stated that this is not always a bad thing, it will bring new people into the workforce and this means fresh ideas and new perspectives on the organisation and methods.

Different Types

There are two very different types of employee turnover; voluntary and involuntary. Voluntary turnover is when an employee chooses to leave the company, and quite simply, involuntary is when employees are made redundant by the company, in effect being asked to leave by the company.

As a general rule, it is suggested that voluntary turnover is the measure used to discuss and compare employers as it is a reflection upon the company, does the company struggle to pay fairly? Is there a poor working atmosphere? Does the company fail to recognise hard work and loyal employees? These are just a few of the conclusions that people may come to when looking at voluntary turnover. Involuntary turnover could be caused by a variety of situations, in most cases, it is due to cut backs and financial problems that mean the company can no longer afford the employee or there has been a recent technology surge and the job they once performed can now be completed by a computer.

What is Turnover Rate?

Turnover rate is a sum of the number of employees who have left the company and it is expressed as a percentage in comparison to the total number of people employed at the company. You can compare to other companies, but be careful, as they may have different outlays and service charges that you do not. When comparing its best to try and find the most similar company to yourself, ensuring they are in the same sector, have the same number of employees, offer the same service and have a similar turnover (if you can’t find this out from Companies House, then make an educated guess!).

What Is Employee Turnover?

How to Calculate Turnover

You can calculate the turnover rate by dividing the number of employees who left by the total number of employees at the beginning of the period. This number is expressed as a percentage. You can calculate voluntary turnover, involuntary turnover, and total turnover. Here’s an example for you to see:

A company had 100 employees at the start of 2013, but by the end of 2013 6 employees decided to quit their job and a further 12 get made redundant due to financial issues and technology updates.

Voluntary turnover rate: 6/100 = 6%

Involuntary turnover rate: 12/100 = 12%

Total turnover rate for 12 months: 6+12 = 18%

How Can You Change Your Turnover?

Unfortunately, for involuntary turnover there are many different answers for different companies and so it’s best to analyse the options below and perhaps try implementing a few ideas into your company.

  • Make sure the manager isn’t the problem – i.e. perhaps conducting a 360 degree feedback software to ask your employees some questions on other members of staff performance, and how it could be improved – this is completely anonymous and only you will see the results – make sure you stress that this anonymous so you get honest feedback.
  • Ensure staff welfare is a top priority! We all spend more time at work then at home so it’s important to make sure that your staff are enjoying their time at work, the more staff benefits you provide the more likely they are to staff with you!
  • Are they being rewarded for great work? Is there commission available in the job role? Are the target your set them achievable? Do they have weekly goals to accomplish? Employees like to be told they are doing a good job, so make sure they are being told when they complete something particular well – motivation is key!
  •  Perhaps organise a Christmas work party? Or to celebrate a birthday? This will enable your staff to bond with each other outside of work and hopefully create a friendlier environment to work in because everyone knows each other that little bit better – this also ties nicely into staff welfare!

The Bottom Line

  •  If you are a first line or middle manager then it is in your best interests to keep your employee turnover low. Here are some of the reasons why:
  • It will make your job easier because you can save time and money on training new staff
  • Saves the company time and money as they do not have to advertise, interview, hire and train new employees regularly – it can take up to 8 months for an employee to be fully competent in their job! That’s a lot of money you will be losing over the first initial 8 month period.
  • Your employees will be happier and therefore more productive

Recent Posts

Find Low Competition Long Tail Keywords Find Low Competition Long Tail Keywords
Business4 days ago

How To Find Low Competition Long Tail Keywords Using Free Tools

Keywords are the most fundamental and highest ROI activity when it comes to SEM and SEO.  Having the right keywords,...

Top Tips For Healthy Family Meals On A Budget Top Tips For Healthy Family Meals On A Budget
General1 week ago

Top Tips For Healthy Family Meals On A Budget

A healthy diet is not very difficult to follow since there is a lot of information available on the Internet...

Tips For Your Morning Skincare Routine Tips For Your Morning Skincare Routine
Lifestyle2 weeks ago

Tips For Your Morning Skincare Routine

Keeping your skin healthy can come down to numerous things. A healthy diet will be a good start in keeping...

How to Make SEO Work For You and Your Business How to Make SEO Work For You and Your Business
Business3 weeks ago

How to Make SEO Work For You and Your Business

The world of search engine optimization has changed a lot, but certain fundamental principles like focusing on target keywords to...

How to Increase Your Vegetable Garden Yield This Year How to Increase Your Vegetable Garden Yield This Year
Home Improvement4 weeks ago

How to Increase Your Vegetable Garden Yield This Year

If you are going thru the effort of planning, planting, caring, and growing your plants, you naturally want to get...

Why Families Benefit From A Family Dentist When Dealing With Oral Health Issues Why Families Benefit From A Family Dentist When Dealing With Oral Health Issues
General1 month ago

Why Families Benefit From A Family Dentist When Dealing With Oral Health Issues

Oral Health issues can be a source of conflict and stress in families, especially in families with young children. Not...

What Type Of SEO Is Effective? What Type Of SEO Is Effective?
Tech1 month ago

What Type Of SEO Is Effective?

Every business knows that it takes a huge amount of time and money to maintain a website. However, no one...

4 Reasons to Replace Your Car's Engine With Performance Parts 4 Reasons to Replace Your Car's Engine With Performance Parts
Autos2 months ago

4 Reasons to Replace Your Car’s Engine With Performance Parts

Performance parts are the best kind of upgrades you can make to a car. Performance cars have a higher price...

Maximum Power: Update Your Old House For Modern Electrical Needs Maximum Power: Update Your Old House For Modern Electrical Needs
Home Improvement2 months ago

Maximum Power: Update Your Old House For Modern Electrical Needs

An outdated electrical system can wreak havoc on your energy bills and greatly increase your risk of structural damage. If...

Key Techniques To Learn On A First Aid Course Key Techniques To Learn On A First Aid Course
Health2 months ago

Key Techniques To Learn On A First Aid Course

Introduction First aid training is an incredible qualification that can enable one to offer life saving assistance in an emergency....

Best Tips For Managing Your Building and Construction Projects Best Tips For Managing Your Building and Construction Projects
General2 months ago

Best Tips For Managing Your Building and Construction Projects

Building and construction projects consist of many tasks, from job-site duties to office paperwork. Juggling it all can oftentimes be...

How To Choose The Best Locksmith For The Job How To Choose The Best Locksmith For The Job
Home Improvement2 months ago

How To Choose The Best Locksmith For The Job

The existence of a locksmith is very crucial for society because they help out countless people on a daily basis....

5 Modern Conservatory Ideas To Create A Serene Escape 5 Modern Conservatory Ideas To Create A Serene Escape
General3 months ago

5 Modern Conservatory Ideas To Create A Serene Escape

Having a serene and relaxing conservatory is the dream, especially in the summer months. Creating an extension of your home...

4 Different Types Of Lifting Equipment For A Construction Site 4 Different Types Of Lifting Equipment For A Construction Site
Business3 months ago

4 Different Types Of Lifting Equipment For A Construction Site

One of the biggest challenges on a construction site is the problem of lifting heavy materials and tools to a...

5 Tips That Can Help Your Business Flourish 5 Tips That Can Help Your Business Flourish
Business3 months ago

5 Tips That Can Help Your Business Flourish

Many, both small and big, businesses were affected by the outbreak of the novel coronavirus, no one was spared. Overnight,...

Categories

Archives

Trending