What is Labor turnover?
Labor turnover, also known as staffing turnover, refers to the ratio of a number of employees who leave a company through attrition, dismissal or resignation to the total number of employees on the payroll in that period.
Labor turnover definition
Labor turnover, also known as staffing turnover, refers to the ratio of a number of employees who leave a company through attrition, dismissal or resignation to the total number of employees on the payroll in that period. It's used for measuring employee retention.
Types of turnovers
1. Voluntary: when an employee leaves the organization on his/her own.
2. Involuntary: when the employees get terminated from his/her services.
3. Functional: when low performing employees are dent from the company in order to enhance the overall performance.
4. Dysfunctional: when skillful, good performing employees leave the company leaving the company in a bad shape.