What Is Employee Turnover?

Employee turnover is an HR metric that measures the proportion of employees who leave an organization during a given period.

It helps organizations monitor workforce movement and better understand team stability. A significant change in employee turnover may encourage an organization to examine its management practices, working conditions, career opportunities or the overall employee experience.

Employee turnover should not, however, be interpreted on its own. Some departures are natural and can even be beneficial to an organization. The objective is primarily to understand who is leaving, why they are leaving and under what circumstances.

How Do You Calculate Employee Turnover?

A common method is to compare the number of employee departures during a specific period with the average number of employees during that same period.

Employee turnover rate = (Number of departures ÷ Average number of employees) × 100

For example, an organization with an average of 100 employees and 12 departures during the year would have an annual turnover rate of 12%.

It is important to use a consistent calculation method from one period to another so that results can be compared over time.

What Period Should Be Used to Calculate Employee Turnover?

Employee turnover is often calculated annually, but it can also be monitored monthly or quarterly.

The appropriate period depends on the size of the organization and its needs.

An annual calculation provides an overall picture, while more frequent monitoring can help identify changes or emerging trends more quickly.

What Is the Difference Between Voluntary and Involuntary Turnover?

Not all employee departures have the same meaning.

Voluntary turnover generally refers to employees who choose to leave the organization, for example to accept another position, change careers or pursue another professional opportunity.

Involuntary turnover refers to departures initiated by the employer, including certain terminations or position eliminations.

Separating these categories can provide a more accurate understanding of workforce movement.

What Can Cause High Employee Turnover?

A higher turnover rate can have many causes and does not automatically mean that there is a problem within the organization.

Factors that may influence employee departures include:

• The relationship with the manager.
• Career advancement opportunities.
• Compensation and benefits.
• Workload.
• Working conditions and flexibility.
• Lack of recognition.
• The onboarding experience.
• Workplace climate.
• Changes in the labour market.
• A gap between employee expectations and the reality of the role.

Analyzing employee departures can help identify whether certain causes are occurring repeatedly.

Is There a Good Employee Turnover Rate?

There is not necessarily an ideal turnover rate that applies to every organization.

Turnover can vary considerably depending on the industry, types of positions, size of the organization, labour market and even individual teams within the same organization.

A turnover rate of 10%, for example, may therefore have a very different meaning from one organization to another.

It is often more useful to monitor changes in your organization’s own turnover rate over time and identify where departures are occurring.

How Can Employee Turnover Be Analyzed More Effectively?

An overall turnover rate is a useful starting point, but it can hide very different realities within an organization.

Turnover can be analyzed according to:

• Department or team.
• Type of position.
• Employee tenure.
• Manager.
• Work location.
• Voluntary and involuntary departures.
• Departures during the first few months of employment.

For example, a relatively stable organization-wide turnover rate could hide a significant concentration of departures within one particular team.

This is why turnover should be considered alongside other HR metrics and KPIs.

What Is the Relationship Between Employee Turnover and Retention?

The two concepts provide complementary perspectives on workforce stability.

Employee turnover focuses primarily on departures and workforce movement, while employee retention focuses on an organization’s ability to keep its employees.

When an organization notices an increase in departures, a more detailed analysis can help identify the factors influencing employee retention.

How Can an Organization Reduce Problematic Employee Turnover?

Before introducing new initiatives, it is important to understand why employees are leaving.

An organization can:

1. Analyze HR data to identify the teams or positions most affected.
2. Examine reasons for leaving through exit interviews and other feedback mechanisms.
3. Evaluate the onboarding experience, particularly when employees leave shortly after joining.
4. Support managers in strengthening their management and communication practices.
5. Review internal career opportunities and professional development.
6. Adjust HR practices when recurring trends are identified.
7. Monitor results over time to determine whether the situation is improving.

The objective is not necessarily to eliminate turnover, but rather to reduce avoidable departures and better understand workforce movement.

In Summary

Employee turnover measures the proportion of employees who leave an organization during a given period.

More than the number itself, it is the analysis behind the turnover rate that provides useful information. Looking at the types of departures, affected teams, employee tenure and reasons for leaving can help uncover issues that may not be visible through an organization-wide rate alone.

Working with an HR consultant can help an organization analyze employee turnover, understand the factors contributing to departures and implement HR practices adapted to its needs.