#Turnover rate meaning how to#

“Estimates of the cost of turnover vary, but commonly it is 33% of an individual’s salary,” she continued. “The costs to an organization are great,” said Goldberg. Not only can understanding your employee turnover keep you from losing your best people, it can also prevent you from losing a lot of money. “When you know how your turnover is trending - and how your turnover compares to industry benchmarks - you can learn if there are problems that need to be addressed,” like recruitment or management issues, she explained. Goldberg & Associates and author of The Inside Gig: How Sharing Untapped Talent Across Boundaries Unleashes Organizational Capacity.

“Calculating your employee turnover rate is like getting your annual physical it is how you get a sense of the health of your organization,” said Edie Goldberg, PhD, founder and President of consulting company E.L. Knowing the rate at which employees are leaving your company is a must if you want your organization to thrive. Your employee turnover rate is the percentage of employees that leave your organization during a given time frame. What Employee Turnover Rate Is and Why It’s Important

#Turnover rate meaning how to#

Let’s take a look at everything you need to know about how to calculate employee turnover rate, why it’s important, and how to lower your turnover rate and keep top talent at your company. Understanding your employee turnover rate will give you key insights into the rate at which employees are leaving your company - and, just as importantly, why they’re leaving. The only way you’ll know if your employee turnover falls into the “expected” or “problematic” category is by calculating your employee turnover rate. But there’s an expected, manageable level of employee turnover - and then there’s a problematic level of employee turnover that means there is a serious issue with your business.