Turnover

From WikiMD's Wellness Encyclopedia

Turnover refers to the rate at which employees leave a workforce and are replaced. It is a critical metric for organizations as it impacts productivity, morale, and overall business performance. Turnover can be voluntary or involuntary, and it is often measured as a percentage of the total workforce over a specific period.

Types of Turnover[edit | edit source]

Turnover can be classified into several types:

  • Voluntary Turnover: This occurs when employees choose to leave the organization on their own accord. Common reasons include better job opportunities, personal reasons, or dissatisfaction with the current job.
  • Involuntary Turnover: This happens when employees are terminated by the organization due to reasons such as poor performance, misconduct, or organizational restructuring.
  • Functional Turnover: This type of turnover is considered beneficial to the organization as it involves the departure of underperforming employees.
  • Dysfunctional Turnover: This is detrimental to the organization as it involves the loss of high-performing employees.

Causes of Turnover[edit | edit source]

Several factors can contribute to employee turnover, including:

Measuring Turnover[edit | edit source]

Turnover is typically measured using the following formula:

Turnover Rate = (Number of Separations / Average Number of Employees) x 100

This formula helps organizations understand the proportion of employees leaving and can be used to compare turnover rates across different departments or time periods.

Impact of Turnover[edit | edit source]

High turnover rates can have several negative impacts on an organization, such as:

  • Increased recruitment and training costs
  • Loss of organizational knowledge
  • Decreased employee morale
  • Lower productivity levels

Conversely, a certain level of turnover can be beneficial as it brings in new talent and ideas, and can help in removing underperforming employees.

Strategies to Reduce Turnover[edit | edit source]

Organizations can implement various strategies to reduce turnover, including:

Related Pages[edit | edit source]

Categories[edit | edit source]

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Contributors: Prab R. Tumpati, MD