02. What is Employee Turnover?

 

Employee turnover refers to the total number of workers who leave a company over a certain time period. It includes those who exit voluntarily as well as employees who are fired or laid off—that is, involuntary turnover.

Staff turnover is an important way to measure both the effectiveness of the human resources management system and the overall management of an organization or program. It provides a complementary measure to the previous indicator on key positions filled.

How to calculate employee turnover with an example

What is the good employee turnover ratio? As a general rule, employee retention rates of 90 percent or higher are considered good and a company should aim for a turnover rate of 10% or less.

 

02.1 Who is responsible for employee turnover?

While many factors converge to cause an employee to leave a job voluntarily or involuntarily, the former is most closely associated with the manager. Poor managers are a major reason employees leave—and good managers help design work environments that encourage people to stay. HR is responsible for tracking employee turnover and providing insight on trends, but in terms of people within the organization, a manager has the most power to prevent voluntary turnover.

 

02.3 What are four types of employee turnover?

1. Voluntary Turnover

No organization is immune from voluntary turnover. People will decide it's time for a change and are likely to leave at some point. But it is possible to reduce your voluntary turnover rate.

Chances are, you already have exit surveys in place for voluntary turnover. If not, start here!

Surveying employees who choose to leave your organization will provide invaluable insights on how to move forward. Use this data to understand:

• Why an employee left
• What you could have done about it
• The impact their loss will have on the organization

You'll want to keep a special eye on your undesirable turnover. This is when you lose top performers for preventable reasons.

 

2. Involuntary Turnover

Involuntary turnover is when the company asks an employee to leave. This could be due to:

• Poor performance
• Behavioral issues
• Changing business needs
• Budget cuts
• Structural reorganization/reductions in force

Most will assume that an employer makes this decision–and that the employee never wanted to leave. But with involuntary turnover, there is always two sides to the story.

Use your turnover data to confirm that the organization made a fair decision—and that the employee will not suffer from the loss.

 

3. Retirement

People tend to say exits due to retirement are inevitable and out of the company’s control. However, surveys show that some employees become disengaged and choose to retire early. They might decide to exit your organization, but keep on with their career.

Create an exit survey targeted to retirees. This will help you understand their unique needs and challenges. You'll be able to identify ways to engage and retain older, more tenured employees.

Retiree feedback can help make your workplace better, so you can keep new employees for the long haul.

4. Internal Transfers

Internal transfers involve employees taking new positions within the same organization. This type of employee turnover can be a sign of healthy movement. But there may be other intentions behind an employee's cross-team move.

Exit surveys can help paint a better picture of why an employee transferred. It could be because they were interested in a new role or a growth opportunity. Or it could be that they are running from a bad manager, distrust in co-workers, or lack of growth.

This type of survey data can help you understand what is working as whole, and where individual teams could improve. When on employee leaves a team or department, there's an opportunity for managers to ensure that those left behind remain engaged.

 

02.4 What might be considered causes for employee turnover?

• Rude behavior.
• Work-life imbalance.
• A mismatch between the job expectations.
• Employee misalignment.
• Feeling undervalued.
• Coaching and feedback are lacking.
• Decision-making ability is lacking.
• People skills are inadequate.
• Organizational instability.
• Raises and promotions were frozen.
• Faith and confidence shook.
• Growth opportunities not available

 

02.05 Disadvantages of Turnover

It causes many inconveniences for an organization. The main demerits are discussed below:

• Turnover involves different types of costs, such as the cost of replacement and opportunity costs. There are both direct and indirect costs. Direct costs relate to the living costs, replacement costs, transition costs, and indirect costs related to production loss reduced performance levels, unnecessary overtime, and low morale.
• The impact, however, is not only financial; it also adversely affects employee morale. Although hard to quantify, poor morale results in a domino effect that negatively impacts efficiency and effectiveness.
• Another demerit is, decreased performance in the workplace. Less experienced workers are less likely to sell higher-value solutions and deliver optimized service.
• Many of the negative effects of turnover relate to performance quality. Companies with higher turnover may struggle to complete all necessary or important daily functions.

 

 

 

 

 

 

 

References  

 

https://www.google.com/search?q=do+employee+turn+over+is+essensial+for+an+organization&client=firefox-b

https://www.iedunote.com/employee-turnover

https://www.quantumworkplace.com/future-of-work/4-types-of-employee-turnover-you-need-to-analyze

www.wikipedia .org

www.Google.lk