Reducing employee turnover rates is an ongoing concern for human resources professionals in all industries. Annualized turnover calculations can be found by dividing the number of employees who left an organization over the course of a year by the total number of employees employed by the organization in that same period. What constitutes a high turnover rate varies widely based on a number of factors — the US Bureau of Labor Statistics provides a useful accounting of annual turnover rates broken down by industry.
The percentage of employees who leave an organization in a set period of time can be a strong indicator of a company’s overall health. Thoughtfully assessing why an employee leaves a particular organization via exit interviews, employee surveys, and other proactive efforts is crucial to any company wishing to improve employee retention.
Employers should remember that there are many different types of turnover, each requiring a different strategy. For instance, there is a big difference between a poor performer whose role is terminated by the employer, an employee who decides they do not fit well with the company culture, and an employee who chooses to leave a role to pursue different career paths. Developing a well-considered, long-term strategy for addressing each of these scenarios can help boost retention of quality employees and improve an organization’s bottom line.
Ascentis’ powerful talent management software can help with all of your employee retention needs.