It is the ratio of the number of employees who leave the organization to the subsequent replacement by new talents.
Higher employee turnover will be a risk to the business. Let us explore this with an example. If you need to hire a new employee, you need to train them from the start, which takes more time and energy.
Internal turnover – Internal turnover refers to employees leaving their current position and upgrading or changing to a new position within the same organization.
Voluntary turnover – “Quitting” is the term that perfectly fits voluntary turnover.
Involuntary turnover – If an employee gets dismissed from an organization, it is called involuntary turnover.
Functional turnover – When a low performer in an organization is removed, to enhance the organization’s overall performance, the term functional turnover is used.
Dysfunctional turnover – When a top talented employee leaves an organization, it may affect the organization and lead to bad shape.
Labor turnover, also known as staff turnover, is used to measure the retention of employees in the organization. It refers to the ratio of the total number of employees who leave the organization due to attrition, resignation, or dismissal to the total number of employees in the organization who are on the payroll during that particular time period.
The number of employees who leave an organization over a period of time is called staff turnover.
Gross turnover in accounting terms denotes the total sum of money which is gained or lost over a period of time.
Annual Turnover calculation = Cost of goods x number of goods sold X 12 months.
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