Employee turnover rate: why monitor it, how to calculate it and is a very low turnover rate really the goal?

If you want to reduce the turnover rate, it's a good idea to bounce back from your reports and data. But beware, even a very low turnover does not mean that your business is growing. Maybe it's just stagnating? Let's look at it in more detail

The turnover rate gives us insight into the company's culture (employee retention and engagement) and also how effective the company's HR processes are, such as recruitment and onboarding. Tracking and understanding these metrics helps companies strategically develop their people and stay competitive.

Translation: (in)Voluntary turnover rate =amount of (in)Voluntary Terminates during period / amount of Employees at the beginning of period x100

We assume that if the fluctuation is high (e.g. 20% or more) it is naturally bad. But it doesn't have to be like that. If you mainly leave those whose work results were not very good, then this fluctuation heals the company environment. It is something to think about if those who drive your company forward often leave. Even an excessively low rate does not speak of the most ideal company culture, it can rather mean stagnation and reluctance to move forward and develop. Therefore, it is always necessary to assess individually.

The metrics here are only a guidance. They just give a more detailed insight into the corporate environment. If companies guide, develop and support their employees, they can achieve so-called healthy turnover (which is individual for each company). That includes, for example, promotion or retirement.

Potřebujete pomoci s rozvojem vašich lidí nebo zkvalitněním vašich HR procesů, abyste dosáhli nejen zdravé míry fluktuace?