Labour Turnover
The rate at which employees leave an organisation and are replaced over a given period.
Labour turnover measures how many people leave your organisation within a period, usually expressed as a percentage of the average headcount. It is one of the most closely watched people metrics because departures carry real costs: recruitment fees, lost productivity while roles sit empty, and the time it takes a new hire to reach full effectiveness.
Analysts usually separate voluntary turnover (resignations) from involuntary turnover (redundancies and dismissals), and often track a distinct rate for the first twelve months of service, since early leavers frequently point to problems with hiring accuracy or onboarding.
High turnover is not automatically negative — some churn refreshes skills and culture — but sustained increases warrant investigation through exit interviews and engagement data. Comparing your figure against sector benchmarks helps you judge whether it reflects a wider labour market trend or something specific to your workplace.
