What is Turnover Rate?
Turnover rate is the percentage of employees who leave an organisation over a specific period, typically calculated annually. It is determined by dividing the number of departures by the average number of employees, then multiplying by 100. Turnover can be voluntary (employee chooses to leave) or involuntary (termination, redundancy). Many organisations further distinguish between regrettable turnover (losing people you wanted to keep) and non-regrettable turnover.
Why it matters
High turnover is one of the most expensive problems an organisation can face. Each departure triggers recruiting costs, training costs, lost productivity, and potential morale damage to the remaining team. Understanding your turnover rate and its drivers is essential for both HR strategy and recruitment planning. A high turnover rate in a specific team might indicate management issues, while company-wide turnover might signal compensation or culture problems.
How Teamtailor helps
Teamtailor helps address turnover at the source by improving hiring quality. Structured interviews, better candidate-job matching, and effective onboarding all contribute to hiring people who are more likely to stay and succeed.
