What is staff turnover?
Employee turnover refers to the number of employees who leave an organization within a given time period, often expressed as a percentage of the total workforce. High turnover levels can be problematic due to recruitment and training costs and loss of productivity.
While some levels of staff turnover are normal, high turnover levels can be problematic for organizations. This is because this costs money.
Especially due to the tight labor market in 2024, attracting and retaining staff is essential to continue to exist as an organization. Indeed, the labor market remains quite tight.
Calculate attrition
To calculate staff turnover, follow this formula:
Staff turnover rate = (Number of employees who left/Average number of employees) x 100%
Calculate employee turnover example:
Let’s say a company had 100 employees at the beginning of the year and 10 employees left during the year. At the end of the year, the company had 110 employees.
Number of employees who left = 10 Average number of employees = (100 + 110)/2 = 105
Staff turnover rate = (10/105) x 100 ≈ 9.52%
So the staff turnover rate for that year would be 9.52%.
What is an average staff turnover?
Many professionals ask themselves “What is a healthy staff turnover?” To answer that question properly, it is important to look at the sector. An overview of the turnover rates per sector can be found on the CBS website.
This staff turnover has been calculated on the basis of different organizations in certain sectors. It follows the same formula as explained earlier on this page.
Do you want to calculate your staff turnover and compare it to the benchmark? So you can do that easily by following the formula.
Why staff turnover?
Staff turnover is mainly caused by a mismatch between employees’ expectations and the realities of their work or company culture, resulting in dissatisfaction.
Other key drivers include striving for better employment conditions and opportunities elsewhere, made possible in part by technological advances and flexible work options.
Finally, a lack of professional development opportunities and career paths within an organization is often a cause for leaving your organization.
