Voluntary turnover refers to a usual occurrence in the organization which happens as employees look for new opportunities or exit the company due to dissatisfaction with the current role for diverse reasons. Nonetheless, it is an activity that incurs steep costs on organizations, for it has to consider the costs of advertising for a new role, for relocation, for holding a vacant position, for new joiner’s training, recruiting, and more. Thus, it is crucial to understand the voluntary turnover rate.
Voluntary turnover means a company’s turnover that transpires when an employee voluntarily decides to quit the current job owing to better opportunities, better workplace environment, better pay, etc. this sort of turnover is a tragic thing for organizations as it has to suffer the loss of high-performing employees. The voluntary Turnover Rate is an estimation of the number of employees who made an exit from the organization of their own volition in a specific period or in a given year.
The formula for calculating Voluntary Turnover Rate is as follows:
– Number of voluntary exits of employees / average number of employees * 100
To estimate the average number of employees in an organization, you need to add a number of employees at the starting and at the end, which is then divided by 2.
One technique to limit an organization’s voluntary turnover rate is to strive to enhance the recruitment process to judge how suitable a job applicant is or how fit a job is for a specific position. Employers need to evaluate the possibility that prospective employees will experience job satisfaction and be pleased in their roles.