Turnover rate. It isn’t fun or sexy. That said, if you know anything about balancing the science of running a business and the art of having employees, you know it’s a vital measure of your company’s overall health and culture.
Before we get too much further, let’s be clear that there’s something in this for everyone. For the rookies, we’re going to cover the basics, including how to calculate turnover rate for your company. We’ll talk about how turnover rate pertains to the health of your business and nail down an answer to the question: What is a high turnover rate? And for the seasoned veterans in the audience, we’ll talk through how to reduce turnover rate with employee retention strategies.
Still there? Great—glad we didn’t lose you to a pie recipe. Let’s get to it.
Define Turnover Rate
Employee turnover rate pertains to the percentage of your employees who leave your company over a specific amount of time. Think about all the people who quit voluntarily, get fired, or choose to retire—that’s what you should factor in when calculating your company’s turnover rate. Why is it so important to keep that pulse? Because you need to keep track of when and why employees “turn over,” not just wave goodbye and hope you can replace them as quick as possible.
Is Your Company Experiencing This?
Ugh. As if employees leaving wasn’t painful enough, now we have to do math. Most companies want to know their employee turnover rate on a quarterly or annual basis, by the way. Why? It just takes that long for anything meaningful to show out of it.