Employee Turnover: Employee Turnover Is The Proportion of Employees That Leave Your Organisation During A

Employee Turnover
Employee turnover is the proportion of employees that leave your organisation during a
set period. This period is often a year and is normally expressed as a percentage of your
total workforce. It can be as simple as including all workers who leave in a given year but
it can be broken down further into voluntary or compulsory redundancies and resignation
levels as well as the reasons for leaving to better help with people management.
How can I measure employee turnover?
The simplest way to measure your employee turnover is as a percentage of your total
employee population in a given time period e.g. monthly or annually.
For example:
(Number leavers over given period x 100)/Average total number employed over given
period
So if you employ 80 workers and 12 leave, then the calculation would be:
(12 x 100)/80 = 15% employee turnover rate
Depending on the number of employees, you can be more specific and separate it into
planned turnover i.e. redundancies and retirements as well as unplanned resignations. In
relation to unplanned resignations you may wish to break it down further, taking into
account length of service with company, seniority, employee function, location and so on.
The following is a list of what might be considered 12 reasons for employee turnover:
1. Rude behavior. Studies have shown that everyday indignities have an adverse

affect on productivity and result in good employees quitting. Rudeness, assigning
blame, back-biting, playing favorites and retaliations are among reasons that
aggravate employee turnover. Feeling resentful and mistreated is not an enticement
for a good work environment.
2. Work-life imbalance. Increasing with economic pressures, organizations continue

to demand that one person do the work of two or more people. This is especially
true when an organization downsizes or restructures, resulting in longer hours and
weekend work. Employees are forced to choose between a personal life and a work
life. This does not sit well with the current, younger workforce, and this is
compounded when both spouses or significant others work.
3. The job did not meet expectations. It has become all too common for a job to
significantly vary from the initial description and what was promised during the
interviewing stage. When this happens it can lead to mistrust. The employee starts
to think, “What else are they not being truthful about?” When trust is missing,
there can be no real employee ownership.
4. Employee misalignment. Organizations should never hire employees (internal or

external) unless they are qualified for the job and in sync with the culture and goals
of the organization. Managers should not try to force a fit when there is none. This
is like trying to force a size-nine foot into a size-eight shoe. Neither management
nor employee will be happy, and it usually ends badly.
5. Feeling undervalued. Everyone wants to be recognized and rewarded for a job

well done. It’s part of our nature. Recognition does not have to be monetary. The
most effective recognition is sincere appreciation. Recognizing employees is not
simply a nice thing to do but an effective way to communicate appreciation for
positive effort, while also reinforcing those actions and behaviors.
6. Coaching and feedback are lacking. Effective managers know how to help

employees improve their performance and consistently give coaching and feedback
to all employees. Ineffective managers put off giving feedback to employees even
though they instinctively know that giving and getting honest feedback is essential
for growth and building successful teams and organizations.
7. Decision-making ability is lacking. Far too many managers micromanage to the

level of minutia. Micromanagers appear insecure regarding their employees’
ability to perform their jobs without the manager directing every move.
Organizations need employees to have ownership and be empowered! Empowered
employees have the freedom to make suggestions and decisions. Today
“empowerment” seems to be a catch-all term for many ideas about employee
authority and responsibility. However, as a broad definition, it means an
organization gives employees latitude to do their jobs by placing trust in them.
Employees, in turn, accept that responsibility and embrace that trust with
enthusiasm and pride of ownership.
8. People skills are inadequate. Many managers were promoted because they did
their jobs very well and got results. However, that doesn’t mean they know how to
lead. Leaders aren’t born—they are made. People skills can be learned and
developed, but it really helps if a manager has a natural ability to get along with
people and motivate them. Managers should lead by example, reward by deed.
9. Organizational instability. Management’s constant reorganization, changing

direction and shuffling people around disconnects employees from the
organization’s purpose. Employees don’t know what’s going on, what the priorities
are or what they should be doing. This causes frustration leading to confusion and
inefficiencies.
10. Raises and promotions frozen. Over the years, studies have shown that money
isn’t usually the primary reason people leave an organization, but it does rank high
when an employee can find a job earning 20 to 25 percent more elsewhere. Raises
and promotions are often frozen for economic reasons but are slow to be resumed
after the crisis has passed. Organizations may not have a goal to offer the best
compensation in their area, but if they don’t, they better pay competitive wages and
benefits while making their employees feel valued! This is a critical combination.
11. Faith and confidence shaken. When employees are asked to do more and more,
they see less evidence that they will ultimately share in the fruits of their labor.
When revenues and profits increase along with workload, organizations should
take another look at their overall compensation packages. Employees know when a
company is doing well, and they expect to be considered as critical enablers of that
success. Organizations need to stop talking about employees being their most
important asset while treating them as consumables or something less than
valuable. If an organization wants empowered employees putting out quality
products at a pace that meets customer demand, they need to demonstrate
appreciation through actions.
12. Growth opportunities not available. A lot of good talent can be lost if the
employees feel trapped in dead-end positions. Often talented individuals are forced
to job-hop from one company to another in order to grow in status and
compensation. The most successful organizations find ways to help employees
develop new skills and responsibilities in their current positions and position them
for future advancement within the enterprise. Employees who can see a potential
for growth and comparable compensation are more inclined to stay with an
organization.

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Employee Turnover

How can I measure employee turnover?

(12 x 100)/80 = 15% employee turnover rate

1. Rude behavior. Studies have shown that everyday indignities have an adverse

2. Work-life imbalance. Increasing with economic pressures, organizations continue

4. Employee misalignment. Organizations should never hire employees (internal or

5. Feeling undervalued. Everyone wants to be recognized and rewarded for a job

6. Coaching and feedback are lacking. Effective managers know how to help

7. Decision-making ability is lacking. Far too many managers micromanage to the

9. Organizational instability. Management’s constant reorganization, changing

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