What does “employee turnover” refer to?

Employee turnover refers to the rate at which employees leave an organization. It is a critical metric for human resources because it can indicate the overall health of an organization, affecting productivity, morale, and costs associated with hiring and training new staff. High turnover may signal issues such as poor management, lack of career development opportunities, or insufficient compensation, prompting organizations to analyze and address the underlying causes.

Understanding turnover helps organizations implement strategies to improve retention, foster employee engagement, and create a stronger workplace culture. This concept contrasts with other options, which address salary increases, new hires, or tenure but do not capture the essence of employee turnover itself. Recognizing turnover allows HR professionals to gauge the stability of their workforce and to develop effective workforce planning and talent management strategies.