The A-Zs of Hiring Glossary

Employee Turnover

What is Employee Turnover?

Employee turnover refers to the rate at which employees leave a company and are replaced by new hires. It is a measure of the number of employees who leave a company over a certain period of time, usually expressed as a percentage of the total workforce. High employee turnover can be a significant problem for businesses, as it can be costly and disruptive to operations.

When employees leave a company, they take with them their knowledge, skills, and experience, which can be difficult to replace. This can result in a loss of productivity and revenue, as well as increased costs associated with recruiting, hiring, and training new employees. Additionally, high employee turnover can negatively impact employee morale and engagement, as remaining employees may feel overworked and undervalued.

There are many factors that can contribute to high employee turnover, including poor management, low pay or benefits, lack of opportunities for advancement, and a negative company culture. Employers can reduce employee turnover by addressing these factors and implementing strategies to improve employee retention, such as offering competitive pay and benefits, providing opportunities for professional development and growth, and fostering a positive work environment.

Why do employees leave a company?

There can be various reasons why employees leave a company, such as lack of growth opportunities, poor management, low salary, a toxic work environment, and a lack of work-life balance.

What are the effects of high employee turnover on a company?

High employee turnover can have negative effects on a company, such as decreased productivity, increased recruitment and training costs, decreased morale, and a negative impact on the company’s reputation.

Dos And Donts of Employee Turnover


  • Develop a strong onboarding process to ensure new employees feel welcomed and supported
  • Offer competitive salaries and benefits to attract and retain top talent
  • Provide opportunities for professional growth and development
  • Regularly communicate with employees to understand their needs and address any concerns
  • Recognize and reward employees for their hard work and contributions


  • Don’t ignore signs of employee dissatisfaction or disengagement
  • Don’t overlook the importance of company culture in retaining employees
  • Don’t make promises you can’t keep regarding job security or advancement opportunities
  • Don’t tolerate toxic behavior or a negative work environment
  • Don’t rush the hiring process and risk bringing on employees who are not a good fit
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