{"id":30646,"date":"2019-11-06T11:53:46","date_gmt":"2019-11-06T19:53:46","guid":{"rendered":"https:\/\/www.orgchartpro.com\/?p=30646"},"modified":"2019-11-06T21:16:07","modified_gmt":"2019-11-06T21:16:07","slug":"understanding-turnover-rate","status":"publish","type":"post","link":"https:\/\/orgchartpro.de\/de\/understanding-turnover-rate\/","title":{"rendered":"Understanding Turnover Rate"},"content":{"rendered":"

Understanding and Improving Turnover Rate<\/span><\/h1>\n


\nUnderstanding and managing turnover rate is a key part of any organization’s HR strategy, or at least it should be. <\/span>L<\/span>os<\/span>ing<\/span> good employees is expensive.<\/span> Managing turnover goes beyond simply calculating the turnover rate and trying to hit an arbitrary number. When business leaders see turnover as an indicator of workplace culture, leadership effectiveness, and more, the entire workforce can prosper. To read the pulse of your company\u2019s culture, start with the turnover rate.<\/span><\/p>\n

How Turnover Impacts Business<\/span><\/h2>\n

Over the last decade, overall turnover in the US has consistently increased: the <\/span>total separations rate in 2018 was 44.3%<\/span><\/a>\u2014up a full percentage point from 2017<\/span>. Wit<\/span>h the cost of backfilling roles <\/span>estimated at 20%<\/span><\/a> of that position\u2019s salary and <\/span>40% of total separations<\/span><\/a> occurring within an employee\u2019s first year, it\u2019s no surprise that business leaders are eager to curb turnover by any means necessary.<\/span><\/p>\n

Keep in mind that a \u201chealthy\u201d turnover rate, just like the cost of turnover, varies greatly across industries and even across one company\u2019s own diverse departments. <\/span>While turnover is an organic part of running any business, it can be potentially damaging if it\u2019s not understood. There\u2019s no way to completely prevent any employee\u2019s separation, but savvy leaders and HR teams know that mitigating unnecessary departures requires a close, innovation-minded look at overall workplace culture. The new wave of employee retention is all about diversity, happiness, flexibility, and benefits.\u00a0<\/span><\/p>\n

First, tracking voluntary versus involuntary separations is an essential first step in understanding why employees are leaving your company\u2014and your key to keeping good talent. OrgChart has several clear visualizations of relevant turnover metrics to pinpoint strengths and weaknesses within your organization:<\/span><\/p>\n

\"Org<\/p>\n

Terminations and separations<\/em><\/span><\/p>\n

\"https:\/\/lh6.googleusercontent.com\/7wDyge804PV06ROZtt0xsSqT8aq-qXI0ZrcqFxdyxd29BBqtu4xDC1ReD86Y8vwG0otAgpJ20Xp8m7-IrBPjT1oWoAurGJusQ5z1ysgZ78l-nd2EhcA2NT7KNQusAmAqeOxKqfLf\"<\/span><\/p>\n

Turnover ratio<\/em><\/span><\/p>\n

Tactfully and compassionately addressing any employee\u2019s exit is vital for the health of your whole organization, from ensuring that private data is secure to <\/span>maintain<\/span> a good culture within the former employee\u2019s team.<\/span><\/p>\n

Some practical, actionable advice for improving unwanted turnover:<\/span>.<\/span><\/span><\/p>\n