Staff turnover measures how many employees leave an organisation over a given period, usually expressed as a percentage of average headcount. High turnover signals retention problems, recruiting cost pressure, or both, depending on whether the departures are voluntary or not.
What it means
Turnover is more informative split by type - voluntary resignations versus involuntary dismissals or retrenchments - and by where in the organisation it concentrates, since one team with high turnover points to a different problem than turnover spread evenly across the business.
Where it fits in
Every departure that contributes to turnover triggers offboarding and a final pay calculation, and sustained high turnover drives ongoing payroll administrative load through repeated onboarding and final-pay cycles.
Key rules
- The rate at which employees leave, usually as a percentage of headcount.
- Best analysed split by voluntary versus involuntary departures.
- Concentration in one area signals a different problem than even spread.
- Each departure triggers its own offboarding and final pay cycle.
