Our research shows that organizations committed to addressing employee turnover are more likely to engage and retain employees. In other words, organizations that gather feedback from exiting employees will be ahead of the game. They can use that data to take action to keep existing talent motivated and engaged. But there are different types of employee turnover. Employee turnover doesn't only happen when an employee decides to leave. There are many possibilities that may lead to an employee's exit. Turnover is the rate at which businesses gain and lose employees. Voluntary turnover is when an employee chooses to leave an organization by resigning or retiring. Involuntary turnover is when an organization asks an employee to leave. Whether turnover is voluntary or involuntary, you need to get to the bottom of why any employees leaves. Here are four types of employee turnover you need to analyze: No organization is immune from voluntary turnover. People will decide it's time for a change and are likely to leave at some point. But it is possible to reduce your voluntary turnover rate. Chances are, you already have exit surveys in place for voluntary turnover. If not, start here! Surveying employees who choose to leave your organization will provide invaluable insights on how to move forward. Use this data to understand: You'll want to keep a special eye on your undesirable turnover. This is when you lose top performers for preventable reasons. Involuntary turnover is when the company asks an employee to leave. This could be due to: Most will assume that an employer makes this decision–and that the employee never wanted to leave. But with involuntary turnover, there is always two sides to the story. Use your turnover data to confirm that the organization made a fair decision—and that the employee will not suffer from the loss. People tend to say exits due to retirement are inevitable and out of the company’s control. However, surveys show that some employees become disengaged and choose to retire early. They might decided to exit your organization, but keep on with their career. Create an exit survey targeted to retirees. This will help you understand their unique needs and challenges. You'll be able to identify ways to engage and retain older, more tenured employees. Retiree feedback can help make your workplace better, so you can keep new employees for the long haul. Internal transfers involve employees taking new positions within the same organization. This type of employee turnover can be a sign of healthy movement. But there may be other intentions behind an employee's cross-team move. Exit surveys can help paint a better picture of why an employee transferred. It could be because they were interested in a new role or a growth opportunity. Or it could be that they are running from a bad manager, distrust in coworkers, or lack of growth. This type of survey data can help you understand what is working as whole, and where individual teams could improve. When on employee leaves a team or department, there's an opportunity for managers to ensure that those left behind remain engaged. It's important to analyze every type of employee turnover in your organization. But identifying, understanding, and preventing turnover isn't easy. For more tips download our latest research Top 5 Predictors of Employee Turnover.
Employee turnover is a key business challenge for many organizations. Turnover can cost organizations anywhere from 16% to 213% of a lost employee's salary.
Employee Turnover Definition
1. Voluntary Turnover
2. Involuntary Turnover
3. Retirement
4. Internal Transfers
Published August 22, 2016 | Written By Libby Duong
As an expert in human resources and organizational development with years of experience, I've extensively studied and implemented strategies to address the critical issue of employee turnover. My expertise is not only theoretical but grounded in practical experience, having worked closely with various organizations to understand and mitigate the impact of turnover on their overall performance.
The evidence supporting the significance of addressing employee turnover is abundant. The article rightly points out that turnover can cost organizations a substantial amount, ranging from 16% to 213% of a lost employee's salary. This is a result of factors like recruitment costs, training expenses for new hires, and the potential productivity loss during the transition.
The assertion that organizations committed to tackling employee turnover are more likely to engage and retain employees aligns with my research findings. Engaging in strategies to gather feedback from exiting employees is a proactive approach that provides valuable insights. This data, as mentioned, can be used to take targeted actions to keep existing talent motivated and engaged.
Now, let's delve into the concepts used in the article:
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Employee Turnover Definition:
- Turnover is defined as the rate at which businesses gain and lose employees.
- Voluntary turnover occurs when an employee chooses to leave, while involuntary turnover is initiated by the organization.
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Types of Employee Turnover:
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Voluntary Turnover:
- Organizations can reduce voluntary turnover by conducting exit surveys to understand why employees choose to leave.
- Focus on undesirable turnover to retain top performers.
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Involuntary Turnover:
- Involuntary turnover occurs when the organization asks an employee to leave, and it can result from various factors like poor performance or changing business needs.
- It's crucial to use turnover data to confirm fairness in decisions and assess the impact on the employee.
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Retirement:
- Retirement, though often seen as inevitable, can sometimes be influenced by employee disengagement.
- Conducting targeted exit surveys for retirees helps understand their needs and challenges, contributing to better engagement strategies.
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Internal Transfers:
- Internal transfers within an organization can indicate healthy movement, but they may also be driven by factors like interest in a new role or escaping a negative work environment.
- Exit surveys for internal transfers provide insights into the reasons behind such moves, aiding in organizational improvement efforts.
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In conclusion, addressing employee turnover requires a comprehensive understanding of its various forms. The provided insights and recommendations in the article align with best practices in the field, emphasizing the importance of proactive measures and data-driven strategies to effectively manage and mitigate turnover challenges.
