Employee Turnover Explained: What It Is and How to Manage It

Employee turnover is a significant issue that can impact your business if left unchecked. Understanding and managing employee turnover is crucial for the success and stability of any organization.

In this article, we dive deep into the concept of employee turnover and offer you practical tips to reduce it within your business.

What is Employee Turnover?

Employee turnover, often quantified as the employee turnover rate, is a key metric that indicates the number of employees who leave an organization during a specific period. It assumes that departed employees are replaced by new hires.

If vacancies are not filled, this falls under a different category of metrics from turnover.

Subcategories of Employee Turnover

Understanding the different types of employee turnover can better inform your management strategies. These are:

• Voluntary Turnover: When an employee willingly leaves the organization.
• Involuntary Turnover: When an employer decides to terminate an employee.
• Internal Turnover: When an employee moves to a different position within the same company.
• Demographic Turnover: Turnover within specific groups of employees.
• Retirement: A planned form of voluntary turnover.

How to Calculate Employee Turnover

To determine your employee turnover rate, you can use the following formula:

Employee Turnover = (Number Of Departures / Annual Average Number Of Employees) x 100

For example, if at the beginning of the year you have 150 million employees and 50 million depart, your turnover rate would be:

Employee Turnover = (50,000,000 / 150,000,000) x 100 = 33%

Employee Turnover vs. Attrition

While employee turnover measures the rate at which employees are replaced after leaving, attrition refers to employees leaving without being replaced.

How to Manage Employee Turnover

Here are several strategies to help you manage and reduce employee turnover:

• Hire with your business culture in mind.
• Onboard new employees effectively.
• Foster a cooperative team environment.
• Provide competitive compensation and benefits.
• Recognize and reward employee achievements.
• Conduct regular and meaningful performance reviews.
• Improve managerial oversight.
• Equip employees with the necessary tools and resources.
• Empower employees to work independently.
• Maintain clear and open communication channels.

Decrease Employee Turnover Through Scheduling

A flexible and well-organized scheduling system can significantly reduce employee turnover. Using tools like Sling, you can create efficient schedules that balance work and personal life, leading to increased employee satisfaction and retention.

Get started with Sling today to improve your team's management and reduce turnover.