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What Is Meant By Employee Turnover, Its Types, and Causes

Employee turnover defines as a percentage or number of employees who left the company and then replaced by a new one worker. The exact definition of turnover is that it happens when the relationship of employment ends.

Types Of Employee Turnover

There are various types of employee turnover present which are given below:

1-Voluntary Employee Turnover

Voluntary employee turnover occurs when the employee resigns or leaves his post. Mostly it happens when the employee gets a superior and new post. It is imperative to find out the root cause of employee turnover.

All the causes related to voluntary employee turnover are linked with the image that the organization provides to its workers.

There is less rate of employee turnover when the organizations make their employees happy and feel them valued.

In case if you detect a situation in which the worker decides to leave this organization or in search of another better opportunity, Then it is time to think about the issues that led to a turnover.

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2- Involuntary Employee Turnover

Involuntary turnover includes when there is the termination of an employee because of a violation of policies of the workplace, absentees, and lousy job performance.

Involuntary employee turnover is also known as firing, discharge, or termination.

It is named Involuntary because, in this decision, the employee will not present. It is the decision of the organization or company for the employee.

It is compulsory to find out the root cause. There is an excellent possibility that the issue is in the selection process or the template of the organization.

causes of employee turnover

3- Desirable Turnover

Another type of employee turnover is a desirable turnover. It is not a negative connotation.

Desirable turnover mostly happens when the work efficiency of employees reduces because of some causes. Then this employee is replaced by the person who meets the organization's expectations and needs.

This turnover is desirable because replacing a poor performer with a better performer is much better than involuntary employee turnover.

It is again for the organization because that one replaced employee may increase the company's profitability.

4- Undesirable Turnover

It is another kind of employee turnover. In this type, the organization has to lose its well-qualified, highly-skilled, and valuable resources. Most of the time, it is not beneficial for the company.

Employee Turnover Statistics

The turnover calculation is not very complicated. For example, if an organization hires 100 employees, and then 15 of them quit or fired this job.

In this case, the turnover of this company would be 15 percent. Almost every company or organization has a turnover rate.

Let's take another example:

If five workers left the job in February, one left the position in June, and four employees left their job in October.

Then according to this rate, the annual turnover rate would be 10 percent. But the average monthly turnover rate would be 8.3 percent.

The employee turnover rate also varies from type to type. The turnover statistics are highly helpful to determine the training requirements, hiring cost, and the devoted time for recruitment activities.

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Causes Of Employee Turnover

If the employee turnover is high, it costs money, valuable time, and then, in the end, it results in depletion of staff and morale values. There are five major causes of high employee turnover.

1. Lack Of Progression And Growth

For the retention of employees who are well and competent in their work, one thing is a must, and it is the opportunity for development and growth.

If the organization fails to provide opportunities for progress, then there is an excellent chance of employees looking at another job to improve their income and status. Otherwise, the worker will feel as if he is trapped in some dead-end or blind end post.

2. Being Overworked

For an organization, it is reasonable to put extra responsibilities on their work when they face any economic pressure. Maybe the company orders its employees to work even on a weekend or longer hours.

But if you ask a worker what they will select between their personal life or work life. In this situation, the employees may become frustrated, and then they decide to leave the company, which leads to a higher turnover.

3. Lack Of And Recognition And Feedback

If you are unable to give any feedback related to your employees, work progress. It may push your workers far away. They feel bothered and nearly become tired of this all.

So, if you avoid feedback and recognition, it may cause a higher rate of turnover. Because your feedback will surely help your employees to manage their workload happily. Besides this, it will also positively motivate your employees.

employee turnover statistics

4. Decision-Making Opportunity Is Too Low

If you have too low decision-making ability related to your employee, then it will lead to employee turnover. Besides this, if you think that only you can do any task very well and no one can do this without you.

It is the one major thing that may cause higher employee turnover. You should have to give them some freedom, and then you will see what they can do on their behalf. It will maintain your employee turnover.

5. Employee Selection Is Very Poor

If you have a poor selection for an employee or you have reduced ability to pick unmatched employees for their organization. This thing will never be right for you, your employee, and the company.

Because no one can do their well until he is happy or satisfied by his job, his company, and his more influential personalities. It will significantly affect higher turnover for the company.

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How To Reduce Employee Turnover

Some tips will be fruitful for you to reduce and manage employee turnover.

  • Invest in your employees

  • Give rewards to your employees.

  • Improvement in the selection process

  •  Provide thorough feedback and considerate

  • Ensure an excellent work-life balance

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