EMPLOYEE TURNOVER

 

WHAT ISEMPLOYEE TURNOVER IS ?

Employee turnover is a measurement which calculate the number of employees who leaves the particular organization in a stipulated time period. As a norm it is tend to be calculate as annually and presented a ratio on per annum. Turnover can be apply for different departments to an organization based on HR discretion and the prevailed strategies of organization  

HOW TO CALCULATE EMPLOYEE TURNOVER

This can be calculate by dividing total number of employees who leave the organization in a particular time period by the average employees who work within the same time period and multiply it by 100 .This answer is called employee turn over ratio

Temporary hires or employees who go on temporary leave shifts in workforce numbers should exclude from the calculation to arrive fair ration. Also if the calculation is make to a particular unit or department the dividing figure should be the average of the employees only within the unit

VOLUNTRARY TURNOVER VS INVOLUNTRARY TURNOVER

 

Voluntary Turnover	Involuntary Turnover
People are actively choose to leave	When an employer chooses to terminate an employee or remove them permanently from the group
Better job offer	Poor performance
Work place conflicts…etc.	Toxic behavior…etc.

 

Employee turnover is not an abnormal issue to an organization. Thereby the most preferable is a lower rate. However the Turnover ratio should be compared and contrast between same sector organizations (Competitors)   where the definition of lower or higher is based on the place the organization is at comparing with other peer organizations. As an example staff turnover of banking sector cant be match with the Staff turnover of the Apparel sector

WHAT CAUSES EMPLOYEE TURNOVER 

There are many reasons that employees leave the organization. Some reasons are negative and some reasons are normal and acceptable.

Accordingly the most affected factors is people leaving the organization for a negative reasons. Following are the some of the reason that people are leaving the organization

Lack of opportunity for growth or career development

Internal promotion or transfer  

Feeling overworked

Negative feelings towards boss or management

Toxic work environment

Family or life event

Competitive offer

Lack of work-life balance

Involuntary departure

 

Understanding the causes of employee turnover can help businesses make the necessary changes to maintain their workforce at the desired level. 

Reference

BambooHR. 2021. What is Employee Turnover? | BambooHR. [online] Available at: <https://www.bamboohr.com/hr-glossary/employee-turnover/> [Accessed 26 May 2021].