How to accurately calculate turnover?

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Our topic today is extremely important for your business, it is the calculation of turnover .

We can say with certainty that a high turnover rate means that the company is having problems retaining talent , which is a major challenge. If this is the reality of your company, you need to act quickly to stop this rate from growing.

Do you want to understand what turnover is and why it impacts your business? We have prepared a list with the main answers, a formula for calculating turnover and tips for minimizing staff turnover. Check it out!

What is turnover?
In general, turnover is nothing more than the rate of employee turnover in a company. We can say that this term refers to the relationship between the number of employees leaving and the number of employees arriving at the company in a given period.

We would like to point out that, contrary to what some people believe, the concept of turnover is not synonymous with dismissal. When a company lays off employees without any intention of rehiring them, the idea does not apply. For it to be considered turnover, an employee must leave and another must take his or her place.

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In short, there are a huge number of reasons why employees join or leave a company. Thus, the 4 types of turnover are:

Voluntary turnover: when the employee requests termination;
Involuntary turnover: when the company dismisses the employee;
Functional turnover: when an employee with low performance requests benin whatsapp list dismissal, which represents greater advantages for the organization;
Dysfunctional turnover: when the company loses a high-performance employee.
Let us therefore look at the importance of calculating turnover in the company.

Importance of calculating turnover in companies
A company that faces high turnover can face several problems, ranging from increased costs to reduced productivity and even profitability. Turnover helps to have a more complete view of this scenario and prevent negative impacts.

Turnover is one of the main performance indicators of a company, so when its number is at a low percentage it can represent positive aspects for the health of an organization.

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For this to happen, it is essential that the HR team controls turnover and has well-defined processes to monitor and prevent employees from leaving, identifying possible flaws in people management and acting proactively to retain talent.

How to calculate turnover?
To calculate turnover, we need to use a very simple rule. It is necessary to consider the dismissals and arrivals of people in the company during the period. The turnover calculation is carried out as follows, let's see:

Add the number of admissions and the number of dismissals.
Divide by 2.
Divide by the total number of employees within your company.
We recommend this formula if you want to assess the company's overall turnover without extracting qualitative information, as a high overall turnover does not always mean that your hiring process is bad or that your employees are unhappy.

What are the main causes of turnover today?
As we have seen previously, turnover is the rate of turnover of professionals in a company. When this starts to happen frequently, it is important for companies to know what the main causes of turnover are in order to understand how to reduce it.

After all, any dismissal can be costly, not to mention the potential hiring and costs of integrating and training new employees. Let's look at the main causes of turnover below.

Harmful organizational culture
When a company has a well-defined organizational culture , this tends to be an important internal motivational action in itself. When a company does not follow its own principles, the toxicity of the environment becomes one of the main causes of turnover, as dissatisfied professionals go to the job market in search of new and better opportunities.