What is employee turnover?

Glossary/E/Employee Turnover

Employee turnover occurs when employees quit their job at an organization and are consecutively replaced by new employees. It accounts for the loss of talent in the workforce due to resignations, layoffs, termination, retirement, or even demise.

Calculating employee turnover helps organizations optimize productivity, employee experience, and overall employee morale. Turnover can be voluntary, like in the case of resignations or early retirement, or involuntary, such as in the case of layoffs or terminations.

Not to be confused with:

Employee Attrition

Employee attrition is the natural, unpredictable, and inevitable reduction in the workforce of an or...

absenteeism

Absenteeism is a continuous trend of employees missing work for no significant reason.

Not to be confused with:

Employee Attrition

Employee attrition is the natural, unpredictable, and inevitable reduction in the workforce of an or...

absenteeism

Absenteeism is a continuous trend of employees missing work for no significant reason.

Employee Attrition

Employee attrition is the natural, unpredictable, and inevitable reduction in the workforce of an or...

absenteeism

Absenteeism is a continuous trend of employees missing work for no significant reason.

Employee Attrition

Employee attrition is the natural, unpredictable, and inevitable reduction in the workforce of an or...

absenteeism

Absenteeism is a continuous trend of employees missing work for no significant reason.

Employee attrition is the natural and inevitable reduction in the workforce of an organization. Employee attrition can occur when an employee returns or passes away or when an employer eliminates the position. Unlike turnover, employee attrition has nothing to do with disengagement or employee dissatisfaction.

Absenteeism is a continuous trend of employees missing work for no significant reason. While absenteeism is a workplace trend that showcases missed workdays, employee turnover goes on to show poor work culture and lower levels of employee engagement.

What is the main reason for employee turnover?

Toxic work culture

When employees find themselves in a work environment that is not conducive to their growth as a professional and intends to bring them down, they are likely to leave. Toxic work culture is the top reason why companies lose credible talent.

Lack of motivation

People like to work for a cause. Doing meaningful work towards a shared vision or contributing to some unified purpose helps employees feel motivated and driven. When employees no more relate to the organization’s mission, they tend to detach and quit.

Stressful work environment

Work-related stress or over-working is also a contributor to employee turnover rates. Overwork can cause ill-health, upset mental well-being, increase absenteeism, and even cause employee burnout.

Monotony at work

Unchallenging work that causes boredom can lead to employee turnover. In organizations where the job is monotonous and does not grow along with the employee, boredom can set in and cause employees to look for challenging work elsewhere.

Bad leadership

Incompetent leadership, untrustworthy managers, and bad bosses all contribute to employee turnover. Bad leadership can motivate and drive away even the top performers of an organization.