What is the Turnover rate?
The turnover rate is the rate at which a company replaces workers who leave, It is one of the two components of turnover cost, the other being the cost of recruiting and training new workers.
The turnover rate measures the number of separations, both voluntary and involuntary, that occur over the course of one month, it cost is the total cost of replacing or training employees. Turnover cost is not to be confused with turnover, which is the rate or percentage of employees who leave.
Turnover cost is not the same as employee retention, which is the percentage of employees who remain at a company beyond their initial work commitment.
Why the turnover rate is necessary for any organization?
It allows for new blood and new ideas, A high turnover rate can signal that something is wrong with the company culture or the way things are run can also be an indicator that the company is not providing employees with the growth or development opportunities they desire.
The turnover rate can provide insight into which employees are the most engaged and satisfied with their work.
run By understanding these key reasons, companies can take steps to improve their overall turnover rate.