HR Glossary for HR Professionals
Glossary of the most common HR terms and acronyms to assist professionals navigating the ever-growing and ever-changing world of HR terminology.
« Back to Glossary Index
What is turnover?
Turnover is the rate at which employees leave a workforce and become replaced by new hires.
Voluntary turnover happens when an employee leaves a job on their own accord. Usually an employee leaves to start a new job somewhere else, take an internal transfer, or retire. Replacing employees in this situation typically costs a business more because they often involve the loss of high-performing employees.
Conversely, involuntary turnover includes layoffs or reductions in force and terminating poorly performing employees. Unfortunately, employee layoffs and terminations can reflect poorly on the company’s management and financial operations.
To calculate the rate at which employees leave a company, divide the number of employees who left the company by the total number of employees the company started with.
Related Terms: Types of Turnover