Turnover Rate

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. 

 

How to calculate employee turnover rate?

To calculate your employee turnover rate, you must set a time period that you want to calculate within. Next, you must have the number of terminations during that period, and the number of employees at the beginning of the period. This is important because you may have hired new staff between January and April that should not be a part of this equation. 

Use our employee turnover rate cost calculator here.

Now that you know the costs of your employee turnover rate, it’s time to take action.  You can lower your employee turnover rate by increasing employee satisfaction. One very simple and straightforward way to do this is by implementing better systems and processes for team communication and shift scheduling. Scheduling software has been shown to improve employees’ work-life balance, thus reducing the turnover rate for employers. Our free scheduling software Hyre simplifies team communication and saves managers 10-20 hours a week.

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