Employee turnover definition
Employee turnover is the number or rate of employees who leave an organization during a given period, usually where the organization expects to replace them. It can include voluntary departures and employer-initiated exits.
Turnover in practice
Turnover measures movement out of the workforce, but a single organization may track several versions: total turnover, voluntary turnover, regrettable turnover, or turnover within a particular team or tenure group. A useful report states exactly which departures and dates it includes.
Turnover creates two connected pieces of work. Offboarding closes the departing employee's relationship with the organization and transfers their work. Employee onboarding helps the replacement learn the role and become effective.
Employee turnover example
A sales representative resigns, and the company opens a requisition for the same territory. The departure counts toward turnover. During the vacancy, an interim owner receives the account handover; after hiring, the new representative uses the same customer context during onboarding.
Turnover versus attrition
Turnover normally changes who occupies a role. Employee attrition reduces or leaves a gap in the workforce because the role is not immediately replaced. The two measures can use similar formulas, so labels and inclusion rules matter.
Frequently asked questions
How is employee turnover calculated?
A common turnover-rate formula divides the number of employees who left during a period by the average number of employees in that period, then multiplies by 100. State whether the measure includes all exits or only a selected group.
What is voluntary versus involuntary turnover?
Voluntary turnover happens when an employee chooses to leave, for example by resigning. Involuntary turnover happens when the employer ends the employment relationship, for example through dismissal or redundancy.
Does turnover always mean a role is replaced?
In ordinary workforce planning, turnover usually implies that the role remains and may be refilled. If the role closes or stays unfilled and headcount shrinks, attrition is often the more precise term.