Turnover laws & HR compliance analysis

Turnover: What you need to know

Generally, "turnover" refers to voluntary employment termination. Employers often track all employment terminations, however, to evaluate whether a pattern of resignations or firings points to a need for change in the organization.
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An employer's rate of turnover is almost always a clue to organizational health—and the news may not be all bad. Depending on when, where, and why employees are leaving their jobs, employers may want to make adjustments in management strategies, benefits, or compensation. Tracking turnover is critical to early discovery of trends, both positive and negative, that impact the productivity and vitality of an organization.
Of course, some degree of turnover is to be expected and is, in fact, necessary, because it opens the way for new workers and deserved promotions for experienced employees. Bringing in new employees can invigorate an organization with new ideas, fresh perspectives, and unique talents. In addition, it is healthy for a company to lose poor performers to turnover. On the other hand, high turnover with lots of satisfactory but dissatisfied employees leaving, generally means a specific or general unhappiness with the job. While pay is one driving force, there are many other important issues: benefits (especially newer benefits such as flexible hours), scheduling practices, poor job fit, inadequate training, management philosophy, pernicious supervisory behavior, lack of recognition, or better career opportunities.
Depending on the level of the employee, turnover costs can run anywhere from 50 percent to 200 percent of an employee's annual pay. Therefore, it is important for an employer to seek more information as to why employees are ...

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