18 answers
3
Questions
Updated
1238 views
what is the turnover rate?
How often do people get hired and resign/ get terminated.
Login to comment
18 answers
Updated
Matt’s Answer
This really depends on your industry and role. I would recommend looking at your chosen career path.
Most employees do not stay with one company their whole career now. For example, if you are starting a career in tech, many people move roles every couple to 5 years. Moving less than 1 year, unless you have a toxic boss or other situation, is generally not as common.
I recommend finding a company you can grow in, and sticking with it 3-5 years. This gives you room to move up and take on new responsibilities during this time, but also shows to other companies that you aren't stuck to one company or industry.
Most employees do not stay with one company their whole career now. For example, if you are starting a career in tech, many people move roles every couple to 5 years. Moving less than 1 year, unless you have a toxic boss or other situation, is generally not as common.
I recommend finding a company you can grow in, and sticking with it 3-5 years. This gives you room to move up and take on new responsibilities during this time, but also shows to other companies that you aren't stuck to one company or industry.
Updated
Stephen’s Answer
That's a fantastic question that we aim to clarify early in a person's career. Here's how the turnover rate is defined:
Turnover Rate = (Number of Employees who left / Average Number of Employees) x 100
While this definition is crucial for computations or test responses, comprehending a turnover rate can offer valuable insights to both businesses and employees about their organization. Usually, when we discuss turnover rate, we're exploring the reasons why employees choose to stay or depart from a specific job, industry, or sector. A high turnover rate in a particular role could prompt the employer to reevaluate the job requirements and determine if any modifications are necessary. Conversely, a low turnover rate in a certain department or business segment could either reflect excellent leadership or suggest that employees are unsure about how to transition to new roles within their own organization.
Turnover Rate = (Number of Employees who left / Average Number of Employees) x 100
While this definition is crucial for computations or test responses, comprehending a turnover rate can offer valuable insights to both businesses and employees about their organization. Usually, when we discuss turnover rate, we're exploring the reasons why employees choose to stay or depart from a specific job, industry, or sector. A high turnover rate in a particular role could prompt the employer to reevaluate the job requirements and determine if any modifications are necessary. Conversely, a low turnover rate in a certain department or business segment could either reflect excellent leadership or suggest that employees are unsure about how to transition to new roles within their own organization.
Updated
Shunyi’s Answer
The term "turnover rate" refers to the rate at which employees leave a company and are replaced by new employees over a specific period, typically a year. It is an essential metric for businesses as it provides insights into employee satisfaction, organizational health, and the effectiveness of recruitment and retention strategies.
Types of Turnovers:
Voluntary Turnover: This occurs when employees choose to leave the organization for personal reasons or to pursue other job opportunities.
Involuntary Turnover: This happens when the organization decides to terminate employees due to performance issues, organizational restructuring, or other factors.
Types of Turnovers:
Voluntary Turnover: This occurs when employees choose to leave the organization for personal reasons or to pursue other job opportunities.
Involuntary Turnover: This happens when the organization decides to terminate employees due to performance issues, organizational restructuring, or other factors.
Updated
Emily’s Answer
The rate of employee turnover can significantly vary based on the type of industry and the specific job role. For instance, in the business or accounting sector, the turnover rates can differ at each level of the profession. Generally, most professionals tend to stick around for a minimum of two years before they contemplate switching jobs. As someone involved in the hiring process, I pay close attention to the duration an individual has spent at their previous job. If I notice that a person has left a job in less than two years, it piques my interest and I like to find out the reasons behind their decision. Often, there are valid reasons for their departure, but sometimes, there might not be.
Updated
Keely Cannon’s Answer
Great question, Dylan! Turnover is definitely a topic top of mind for many staff members across businesses and industries. Turnover has many factors that play into it: the culture of the organization, overall economic market, growth of the business, etc. There are also types of turnover: voluntary turnover (i.e. a person leaving the company voluntarily) and involuntary turnover (i.e. layoffs). Voluntary turnover fluctuates based on career goals for individuals and what opportunities are available at the company. To avoid voluntary turnover for yourself, consider whether the company you want to work for has opportunities for growth (i.e. promotion, pay increases, leadership opportunities) before you accept the role. I wouldn't spend too much time worrying about involuntary turnover. Focus on doing your best work and positioning yourself as a key contributor to the organization. There may be macroeconomic factors that are beyond your control, but as long as you know you are a high performer in the eyes of your company you have set yourself up for success.
Updated
Abhilasha’s Answer
The term "turnover rate" can be applied in multiple scenarios, such as inventory management in business. However, based on your query, it seems you're interested in understanding the Employee Turnover rate.
The Employee Turnover rate is a vital indicator for any organization. It quantifies the proportion of employees who depart from the company within a specific timeframe, usually calculated annually or quarterly. This rate is an effective tool to evaluate employee retention and the overall effectiveness of management. Here's a simple guide to calculate it:
Step 1: Gather Required Data:
First, decide the timeframe for calculation (monthly, quarterly, or annually). Then, collect the following data:
- Departed Employees: Count the number of employees who left during the chosen period.
- Average Employee Count: Determine the average number of employees present during the same period.
Step 2: Calculate the Turnover Rate:
- Divide the count of departed employees by the average employee count.
- Multiply the obtained result by 100 to convert it into a percentage.
The formula for the turnover rate is:
Turnover Rate = (Number of Departed Employees / Average Number of Employees) x 100
For instance, if 20 employees left during a year when the average employee count was 200, the turnover rate would be:
Turnover Rate = (20 / 200) x 100 = 10%
Step 3: Analyze Your Turnover Rate:
- Compare your turnover rate with the average rates in your industry or region.
- High turnover can result in additional costs, decreased morale, and a lack of skilled employees.
- Address high turnover rates promptly to maintain a healthy and productive work environment.
The Employee Turnover rate is a vital indicator for any organization. It quantifies the proportion of employees who depart from the company within a specific timeframe, usually calculated annually or quarterly. This rate is an effective tool to evaluate employee retention and the overall effectiveness of management. Here's a simple guide to calculate it:
Step 1: Gather Required Data:
First, decide the timeframe for calculation (monthly, quarterly, or annually). Then, collect the following data:
- Departed Employees: Count the number of employees who left during the chosen period.
- Average Employee Count: Determine the average number of employees present during the same period.
Step 2: Calculate the Turnover Rate:
- Divide the count of departed employees by the average employee count.
- Multiply the obtained result by 100 to convert it into a percentage.
The formula for the turnover rate is:
Turnover Rate = (Number of Departed Employees / Average Number of Employees) x 100
For instance, if 20 employees left during a year when the average employee count was 200, the turnover rate would be:
Turnover Rate = (20 / 200) x 100 = 10%
Step 3: Analyze Your Turnover Rate:
- Compare your turnover rate with the average rates in your industry or region.
- High turnover can result in additional costs, decreased morale, and a lack of skilled employees.
- Address high turnover rates promptly to maintain a healthy and productive work environment.
Updated
Vladislav’s Answer
If you are looking to select a career path based on turnover rate - you can definitely use it at a high level to gauge the "stability" of a particular industry / sector/ company relative to similar ones, but please be careful to put too much weight just on the turnover as it can be significantly impacted by the particular event within the organization. You can find this data available in open sources in many cases. There is no "right answer" for turnover so I would use it to compare different option vs comparing against a "benchmark" value.
Updated
Sophia’s Answer
Certainly, the industry plays a significant role. I've noticed that in more intricate fields, they often allow a year, considering the time you need for learning and development. This is a wonderful opportunity to expand your knowledge and skills.
Updated
Lynn’s Answer
turn over rate is a term used in companied that is related to how often employees leave a company and are replaced by new employees. typically expressed in a percentage.
Updated
Emily’s Answer
Besides the factors already mentioned, it's crucial to consider the impact of employee benefits, such as pension plans, on a company's turnover rate. These benefits often require a minimum tenure, typically 3-5 years, before vesting. For instance, certain state departments offer pensions that don't vest until after five years, which could contribute to a lower turnover rate. Therefore, when analyzing turnover rates, it's important to identify what's causing a high or low rate in a specific company or industry, and whether that factor matters to you.
From my experience in a Big-4 accounting firm, known for high turnover rates, I found that this factor didn't discourage me. Many people choose to work in such environments for a short period to gain diverse experience, which can enhance their marketability in the future.
Another key aspect to consider is the difference between private and public sectors. For instance, in the accounting field, private companies usually have lower turnover rates but offer less role diversity. On the other hand, public companies tend to have higher turnover rates but provide more variety in roles and clientele.
To get a broader view, I recommend visiting the Bureau of Labor Statistics website for current and historical turnover rates across various industries. Additionally, asking about turnover rates during job interviews or discussions with industry professionals can provide valuable insights.
From my experience in a Big-4 accounting firm, known for high turnover rates, I found that this factor didn't discourage me. Many people choose to work in such environments for a short period to gain diverse experience, which can enhance their marketability in the future.
Another key aspect to consider is the difference between private and public sectors. For instance, in the accounting field, private companies usually have lower turnover rates but offer less role diversity. On the other hand, public companies tend to have higher turnover rates but provide more variety in roles and clientele.
To get a broader view, I recommend visiting the Bureau of Labor Statistics website for current and historical turnover rates across various industries. Additionally, asking about turnover rates during job interviews or discussions with industry professionals can provide valuable insights.
Updated
Miki’s Answer
The turnover rate varies by industry. For instance, in an accounting firm, the audit staff may leave more often than the back-office staff. When we review resumes for our positions, I wonder why the applicant left their job if they worked there for less than three years.
Updated
Lisa Shane,’s Answer
The turnover rate isn't the same for every business. It can change based on the type of industry, the company's location, and even the political climate. Back when I was in the Human Resources department, our goal was to maintain a yearly turnover rate that was less than 8%. But, I'm aware that in sectors like healthcare and retail, the turnover rate can sometimes be a lot higher.
Updated
Lucy’s Answer
Employee turnover is the percentage of employees that leave your organization during a given time period. it can reflect a company's work culture and employee management.
Updated
DYLAN’s Answer
This is really dependent on what type of industry you are in - generally speaking - in terms of resigning - people resign and move between jobs all the time. It is very common. Termination is not as common, but it can happen anytime, especially if the company is laying off employees because of economic/business circumstances.
Updated
Lisa’s Answer
The fluctuation in turnover rates is influenced by various factors such as the role, industry, and job level. Mercer, a renowned name in research and training, provides valuable insight into these variations. For instance, the average voluntary rate can swing from a high of 32.9% in the Retail and Wholesale industry to a lower 11.7% in the Chemicals sector, and 12.3% in the Energy sector.
(Source: Mercer Blog, "How much turnover is too much?" Results of the 2023 US and Canada Turnover Surveys
https://www.imercer.com/articleinsights/workforce-turnover-trends#:~:text=The%20Retail%20and%20Wholesale%20industry,%25%20and%2012.3%25%2C%20respectively.)
Moreover, it's important to note that certain jobs may experience higher turnover rates compared to others.
(Source: Mercer Blog, "How much turnover is too much?" Results of the 2023 US and Canada Turnover Surveys
https://www.imercer.com/articleinsights/workforce-turnover-trends#:~:text=The%20Retail%20and%20Wholesale%20industry,%25%20and%2012.3%25%2C%20respectively.)
Moreover, it's important to note that certain jobs may experience higher turnover rates compared to others.
Updated
Samuel’s Answer
You've been hired because you've shown that you have the skills needed for the job. If someone isn't meeting the standards, they'll usually be moved to a role that fits their abilities better. To lose your job, you'd have to perform really poorly. If that happens, remember there are MANY other chances to succeed. It's alright if something isn't for you. There are countless stories of former coworkers who changed their approach to work and turned what seemed like a setback into a step forward.
Updated
Angela’s Answer
Turnover rate really depends on job market, economic conditions, company treatment of its employees, and most importantly, your own satisfaction with your current position. There can be forced turnover (meaning layoffs that are due to external factors) or voluntary turnover (meaning you yourself decided you wanted to switch jobs). For many individuals, they typically stay with one firm for a minimum of 2 years before re-evaluating their own happiness and career situation. So if after 2 years at one firm you decided that you want to pursue a career that your current firm cannot offer, it would make sense to find a job elsewhere and resign. Good luck!
Updated
Ricardo’s Answer
What's a Turnover Rate? Think of turnover rate as a way to see how many folks have said goodbye to a company during a specific time frame. It's usually talked about hand-in-hand with something called employee retention rate. This is all about how many employees stick around from the start to the finish of a certain period.