HR Glossary

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.

what-is-labor-turnover

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.

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