Voluntary Turnover Rate

What is Voluntary Turnover Rate?

Voluntary Turnover refers to the turnover in an organization that happens when an employee willingly decides to leave their current job position because of better pay, better job opportunities, better environment, etc. It is a usual occurrence within the organization which happens as employees look for new opportunities due to dissatisfaction with their current roles for diverse reasons. The Voluntary turnover rate is the measurement that defines the number of employees who left the company voluntarily in a specific period.

As per the activity, it’s a process that incurs steep costs in the company, for it’s to consider the costs of advertising for a new position, for holding a vacant position, for relocation, for brand spanking new joiner’s training, recruiting, and more.

Calculation Of Voluntary Turnover Rate:

• Number Of Voluntary Separation / Average Number Of Employees * 100
• Number of employees = (Number of employees at the beginning + Number of employees at the end) / 2

One technique to limit an organization’s voluntary employee turnover rate is to strive to enhance the recruitment process.

Also, See: Swot Analysis