TURNOVER RATE Meaning and
Definition
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Turnover rate, also known as employee turnover rate or attrition rate, refers to the percentage of employees who leave an organization, voluntarily or involuntarily, and are replaced by new employees within a specified period. It is a commonly used metric to measure the effectiveness of an organization's talent management and retention strategies.
The turnover rate is typically calculated by dividing the number of employees who have left the organization during a given period by the average number of total employees during the same period, and then multiplying by 100 to obtain a percentage.
A higher turnover rate indicates a higher level of employee churn within the organization, which can have several implications. It may signify underlying issues such as poor employee morale, dissatisfaction with job or management, inadequate compensation or benefits, lack of career growth opportunities, or a mismatch between job requirements and employee skills.
Conversely, a lower turnover rate suggests a more stable workforce and can be an indicator of higher employee satisfaction, workplace engagement, and effective talent management practices. Organizations with lower turnover rates can benefit from increased productivity, reduced recruitment and training costs, improved knowledge retention, and enhanced overall organizational performance.
Monitoring the turnover rate is crucial for organizations to identify trends, pinpoint problem areas, and take proactive measures to enhance employee satisfaction, improve retention, and attract top talent. It serves as an important tool to assess the impact of HR policies, management practices, and employee engagement initiatives on the organization's workforce.
Common Misspellings for TURNOVER RATE
- rurnover rate
- furnover rate
- gurnover rate
- yurnover rate
- 6urnover rate
- 5urnover rate
- tyrnover rate
- thrnover rate
- tjrnover rate
- tirnover rate
- t8rnover rate
- t7rnover rate
- tuenover rate
- tudnover rate
- tufnover rate
- tutnover rate
- tu5nover rate
- tu4nover rate
- turbover rate
Etymology of TURNOVER RATE
The term "turnover rate" is a combination of two words: "turnover" and "rate".
- "Turnover" originated from the Middle English word "turnen", which means "to turn" or "to revolve". In the context of employment, it refers to the act of replacing or replacing employees in a company. The term gained popularity in the early 20th century.
- "Rate", on the other hand, comes from the Latin word "rata", which means "reckoning" or "calculation". In this case, it signifies the measure or calculation of something.
Therefore, when the two words are combined, "turnover rate" refers to the calculation or measurement of the employee replacement or turnover within a company.
Similar spelling word for TURNOVER RATE
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