What is Employee Turnover?
Employee turnover is a vital HR metric that impacts the efficiency and cost-effectiveness of the entire process of staffing. Whether you’re managing a growing team or trying to retain top talent, understanding why employees leave—and how to minimise it—is crucial for long-term business success.
At its core, employee turnover influences the entire recruitment and selection process, the design of your employee management system, and the effectiveness of tools like applicant tracking systems (ATS) and performance appraisal programs. In this article, we explore what employee turnover means, its types, and why monitoring it is critical for organisational growth.
In simple terms, Employee turnover refers to the number or percentage of employees who leave an organisation during a specific period, whether through resignation, retirement, termination, or internal movement. Turnover can be classified into voluntary and involuntary departures, and while some level of movement is natural, excessive turnover can harm productivity and morale. It can also disrupt your ongoing recruitment process steps and increase the burden on your applicant tracking software and hiring teams.
When managed well, understanding employee turnover provides valuable insights into workforce stability and helps businesses align their staffing strategy with long-term goals.
Types of Employee Turnover
Not all turnover is the same. By recognising the different types, HR teams can better assess what’s healthy and what signals a deeper issue.
1. Voluntary Turnover: Employees leave by choice, often due to dissatisfaction, better opportunities, or personal reasons.
2. Involuntary Turnover: The organisation ends the employment due to poor performance, misconduct, or restructuring.
3. Internal Turnover: Employees move to new roles within the organisation, which may still leave gaps in the current team.
4. Functional Turnover: When low-performing employees exit, it allows room for stronger hires.
5. Dysfunctional Turnover: High-performers leave, negatively impacting performance and morale.
Knowing the type of turnover helps organisations use their employee management system more effectively and adjust recruitment strategies accordingly.
Why Monitoring Turnover Matters
Monitoring turnover isn’t just about counting exits—it’s a strategic tool that enhances employee retention, strengthens recruitment, and improves company culture. When closely monitored, turnover data helps fine-tune every part of the recruitment and selection process.
1. Identify Weak Points in the Hiring Process: High turnover within the first few months may reveal flaws in your recruitment process steps, such as poor job fit, unrealistic role expectations, or ineffective onboarding.
2. Enhance the Effectiveness of ATS Systems: Leveraging your applicant tracking system (ATS) to capture patterns and performance post-hire can provide predictive insights, helping you source higher-quality candidates.
3. Improve Employee Benefits and Experience: Frequent resignations may signal dissatisfaction with compensation, growth opportunities, or lack of recognition. Use turnover data to refine employee benefits and tailor employee experience (EX) strategies.
4. Optimise the Appraisal Performance Cycle: A poor appraisal performance structure can lead to disengagement. Monitoring who leaves and why can help refine feedback loops, growth discussions, and training plans.
5. Plan for Sustainable Growth: High turnover can stall growth. By incorporating turnover data into your employee management system, HR teams can better forecast hiring needs and reduce reactive hiring cycles.
Regularly tracking turnover helps HR teams proactively improve hiring, culture, and performance. It also ensures your staffing process, from sourcing with an ATS tracking system to appraising performance, remains agile and efficient.
Employee turnover isn’t just a data point—it’s a story about your organisation’s health, culture, and ability to retain talent. By understanding its types and proactively monitoring it, businesses can build a resilient workforce and optimise every step of the recruitment and selection process.
With the right systems in place—such as modern applicant tracking software, an effective employee management system, and improved employee benefits—HR teams can turn turnover from a challenge into a competitive advantage.
SeamlessHR: Driving Workforce Productivity in Ghana, Kenya, and Nigeria.
SeamlessHR is a leading HR software provider in Africa, offering a comprehensive human resource management system (HRMS) that supports businesses in Ghana, Kenya, and Nigeria. Their robust suite of solutions includes a modern applicant tracking system (ATS), performance management system, attendance management system, and one of the best payroll applications in the region.
Designed for small, medium to large organisations, SeamlessHR’s platform integrates key HRIS (human resource information systems) capabilities, streamlining everything from candidate tracking to employee benefits and appraisal performance. Businesses benefit from seamless automation across core HR functions like employee management, performance mgmt, payroll system, and talent management.
Leveraging the advantages of human resource management and advanced HR software helps companies in Ghana, Kenya, and Nigeria improve operational efficiency, maintain compliance, and make informed strategic decisions. SeamlessHR further supports this growth with practical tools like employee appraisal templates and manager performance evaluation systems that empower teams to succeed.
With strong local relevance and global standards, SeamlessHR is redefining workforce productivity and HRMS systems in Ghana, Kenya and Nigeria—one business at a time.
