Staff Turnover - Definition & Meaning
What is Staff Turnover?
Staff Turnover is rate at which employee leaves employer in given time period. Staff turnover is used to measure the turnover of the company as compared to others in the industry. It is used to understand attrition and retention in a company.
Example: Staff Turnover of 20% in financial year 2015-16 mean at the end of financial year 2015-16 out of total number of people the company had, 20% have left the organization at the end of financial year.
Why to measure Staff Turnover?
1. To assess turnover against the average turnover in given industry
If company has turnover higher than average turnover in industry, then company is acting as net supplier of sufficiently good talent to industry. This situation is worst for any employer. Such employer become who train the staff by paying salaries.
In order to control turn over employer has to give many other things than just salary to be able to feel valued inside organization. Organization has to look into various practices related to employee engagement, employee satisfaction to be able reduce turnover.
2. To understand how retention can be increased
With higher turnover it becomes imperative to address factors which will increase retention. It could rewards and recognition that is needed or challenges in work environment that were lacking to motivate employee.
In order to motivate employee there are two factors that needs to check for motivation. Hygiene factors that employee expects everywhere he/she employees himself. Employees wanting to reduce turnover must ensure these factors are provided without any further delay. Also some benefits which were previously considered as something rare becomes thing which everyone expects as time moves. Employer has to find these things to satisfy hygiene of retention motivation. Once these factors are ensured higher order benefits must be decided with given context. These wow factors which will create delight that needs to be slowly introduced into system.
As can be easily understood, it is sequential execution of step that will lead to reduced turnover.
Hence, this concludes the definition of Staff Turnover along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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