What is turnover rate?
Employee turnover rate is the amount of employees that leave your organization in a specified amount of time. Usually, it is calculated by year, but the amount can fluctuate during different quarters. For example, in both retail and restaurant industries, many part-time workers return to school in the Fall, increasing turnover rate during Q3.
Why should you pay attention to your turnover rate?
High turnover rates not only reduces morale but also cause disorganization in your business. Being understaffed affects your workflow, causing managers to delegate more work and hours to employees. Poor communication and scheduling problems are a lead cause of employee turnover, especially in shift-based industries. Learn more about turnover rate here.
Forecasting your employee turnover rate will allow you to plan in advance, allocating time for recruiting and resources towards training and orientation. If your turnover rate is drastically affected by seasonality, you can prepare for it or apply different incentives to get employees to stay.