Turnover often is classified as voluntary or involuntary. The involuntary turnover occurs when an employee is fired. Voluntary turnover occurs when an employee leaves by choice and can be caused by many factors. Causes include lack of challenge, better opportunity elsewhere, pay, supervision, geography, and pressure. Certainly, not all turnover is negative. Some workforce losses are quite desirable, especially if those workers who leave are lower-performing, less reliable individuals.
Measuring Turnover
The turnover rate for an organization can be computed in different ways. The following formula from the U.S. Department of Labor is widely used. (Separation means leaving the organization.)
Number of employee separations during the month X 100
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(Total number of employees at mid month)
For example, in a business with an average of 300 employees over the year, 21 of whom leave, labour turnover is 7%. This is derived from (21/300)*100.
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