Types of Employee Turnover

Employee turnover is a critical issue for organizations as it can lead to decreased productivity, increased costs, and a loss of valuable talent. There are several types of turnover, and understanding each type is essential for developing effective strategies to manage and reduce turnover.

Voluntary Turnover

Voluntary turnover occurs when an employee chooses to leave an organization on their own accord, either by resigning or retiring. This type of turnover can be influenced by various factors such as career opportunities, work-life balance, compensation, and job satisfaction.

Involuntary Turnover

Involuntary turnover happens when an organization asks an employee to leave, usually due to poor performance, behavioral issues, or changes in business needs. This type of turnover is initiated by the employer rather than the employee.

Retirement

Retirement turnover refers to employees leaving an organization due to reaching the age of retirement. While retirement is often seen as an inevitable and uncontrollable reason for turnover, some employees may choose to retire early due to disengagement or other factors.

Internal Transfers

Internal transfers occur when employees move to different positions within the same organization. This type of turnover can be a positive sign of career growth and development. However, it can also indicate underlying issues such as dissatisfaction with current roles or team dynamics.

It’s important to note that these types of turnover are not mutually exclusive, and an employee’s departure can fall into multiple categories. Understanding the different types of turnover can help organizations analyze the reasons behind employee exits and develop strategies to manage and reduce turnover.

References

1. Quantum Workplace. (2016, August 22). 4 Types of Employee Turnover You Need to Analyze. https://www.quantumworkplace.com/future-of-work/4-types-of-employee-turnover-you-need-to-analyze
2. Sesame HR. (2021, March 4). What are the four types of employee turnover? https://www.sesamehr.com/blog/what-are-the-four-types-of-employee-turnover/
3. Helpside. (2023, September 19). Three Types of Employee Turnover and How to Manage Them. https://www.linkedin.com/pulse/three-types-employee-turnover-how-manage-them-helpsideteam/

FAQs

What is employee turnover?

Employee turnover refers to the rate at which employees leave an organization and are replaced by new hires.

What are the different types of employee turnover?

The four main types of employee turnover are voluntary turnover, involuntary turnover, retirement, and internal transfers.

What is voluntary turnover?

Voluntary turnover occurs when an employee chooses to leave an organization on their own accord, such as for better career opportunities, work-life balance, or compensation.

What is involuntary turnover?

Involuntary turnover happens when an organization terminates an employee’s employment, usually due to poor performance, misconduct, or changes in business needs.

What is retirement turnover?

Retirement turnover refers to employees leaving an organization because they have reached retirement age.

What are internal transfers?

Internal transfers occur when employees move to different positions within the same organization, often for career growth and development.

Why is it important to understand the different types of employee turnover?

Understanding the different types of turnover helps organizations analyze the reasons behind employee exits and develop targeted strategies to manage and reduce turnover.

How can organizations reduce employee turnover?

Organizations can reduce employee turnover by focusing on improving employee engagement, providing competitive compensation and benefits, offering opportunities for career growth and development, and creating a positive and supportive work environment.