What is employee turnover?

Employee turnover refers specifically to the rate at which employees leave a company, whether voluntarily or involuntarily, and the subsequent need for those positions to be filled again. It is a vital metric in human resources because it can highlight issues related to job satisfaction, workplace culture, or competitive compensation within a company. High turnover rates can indicate problems that may require intervention, such as improving employee engagement or enhancing retention strategies.

Understanding employee turnover helps organizations to assess their human resource practices and identify areas for improvement. In contrast, hiring new staff is merely a part of turnover management but does not encompass the entire concept, which includes both departures and the dynamics surrounding them. Similarly, employee salary increases and training numbers are related to employee development and retention but do not define turnover itself. By focusing on the rate of employees leaving a company, organizations can foster a more stable workforce and improve overall operations.