Employee turnover

In human resources, turnover refers to the employees who leave an organization. The turnover rate is the percentage of the total workforce that leave over a given period. Organizations and industries typically measure turnover for a fiscal or calendar year.

Employee turnover can occur for a number of reasons, including termination, resignation, retirement, death, and transfers to other sections of the organization . External factors—such as financial pressures, work-family balance, or economic crises—may contribute to both individual decisions regarding turnover, as well as the overall turnover rate of an organization.

High turnover can be particularly harmful to a company's productivity, as skilled workers are often hard to replace. Companies may track turnover internally by department, division, or demographic group. Such comparisons can help reveal whether disproportionate departures are occurring on certain teams or among certain demographic groups, alerting leadership to potential systemic problems that may require correction.

Organizations often survey departing employees to understand the reasons for voluntary turnover, and many find that promptly addressing identified issues significantly reduces departures. Common retention measures include benefits such as paid sick days, paid holidays, and flexible schedules.