Employee Turnover

Meaning & Definition

Employee Turnover calculates how often employees leave an organisation within a certain timeframe and includes both voluntary (for example, a resignation) and non-voluntary means (termination or retirement). Employee turnover is normally stated as a percentage; therefore, human resources will be able to analyse the degree of workforce stability, identify the retention issues confronting the organisation, and benchmark data against similar workforces within their industry.

Importance of Employee Turnover

• Assists HR with an analysis of the rates of turnover and retention in the workforce.
• Identifies barriers to employee engagement or job satisfaction.
• Affects recruitment cost, productivity, and continuity of business.
• Supports in developing more effective workforce planning and retention strategies.
• Offers insight into how to improve the organization’s culture and compensation policies.

Legal & Regulatory Considerations

There are no specific regulations related to the legal compliance of staff turnover; however, you must ensure that in all cases of an employee leaving the organisation, they must comply with the relevant statutory labour regulations regarding their notice period, full and final settlement and any statutory benefits that are owed to them.