September 22, 2023

What is employee turnover?

Reem Al-Tamimi

Reem Al-Tamimi

Content Writer

A recruiter wondering what is employee turnover

Employee turnover refers to the total number of employees who leave a company within a defined period, including those who depart voluntarily and those who are subjected to involuntary separation. It’s a measure used to evaluate how many employees are leaving an organization. This calculation is usually done annually and can be applied to the entire company or specific subsets like departments or demographics.

What are the top reasons for high or low employee turnover?

In the concept of employee turnover, understanding the driving factors behind high or low rates is crucial for organizations seeking to retain their talent. Creating a conducive work environment is pivotal in this pursuit:

  • Positive Culture: Companies fostering a culture of creativity and employee well-being establish a foundation for enduring loyalty.
  • Managerial Support: Supportive managers who prioritize employee growth and contentment play a pivotal role in boosting retention.
  • Compensation and Benefits: Competitive pay structures and appealing benefits packages serve as potent tools for retaining personnel.
  • Career Progression: Offering transparent avenues for career advancement within the organization can effectively retain valuable employees.
  • Flexibility: Providing work arrangement flexibility enhances job satisfaction and diminishes the inclination to seek opportunities elsewhere.

What do turnover rates tell us about a business, and how can they be calculated?


Turnover rates provide valuable insights into a business’s dynamics. Elevated rates may indicate employee dissatisfaction, a need for enhanced company culture, or ineffective hiring practices, potentially leading to reduced productivity and escalated expenses related to recruitment and onboarding.

Conversely, minimal turnover often signifies adept management, content employees, and well-crafted future strategies. Analyzing turnover rates alongside comparable companies aids in comprehending the employment landscape.

To compute turnover rates:

Turnover Rate (%)= ( Average number of employees/Number of employees who left) ×100

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Reem Al-Tamimi

Reem Al-Tamimi

Turn top talent to employees fast

Hire, assess, onboard and manage top talent for every job. See how Elevatus streamlines everything; from acquire to new hire.

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