December 17, 2020

8 Employee Turnover Metrics Every Recruiter Should Track

Employee turnover metrics matter to your senior management. These numbers show recruiters and HR professionals how employees have been feeling toward the organization by illustrating why, when, and how they leave. These metrics can become the foundation for organization-wide employee engagement and experience initiatives, from improved perks and benefits packages to rock-solid career paths. These metrics index the health of the organization and affect your customer relationships.

Let’s look at the eight most important employee turnover metrics and how you can move the needle in your favor.

1. Overall Turnover Rate

This metric shows the rate at which employees are leaving your organization. A high turnover rate is an indication that there are issues at the team, department, or organizational levels. To control the overall turnover rate:

  1. Create safe spaces where employees can speak up. This can be as simple as establishing the right communication channels, taking frequent employee engagement surveys, or building a culture that encourages difficult but honest conversations.
  2. Take your exit interviews seriously and address the feedback from departing employees.

Check this employee offboarding guide from Freshteam for some good exit interview questions you can ask. 

2. New Hire Turnover Rate 

This metric indicates the rate at which new hires leave your organization. When this metric is high, it can cause damage to your employer brand, lead to overspending on your recruitment budget, and leave your teams short-staffed. To control new hire turnover:

  1. Clearly communicate the requirements and responsibilities of every role in the job description and during the interview.
  2. Define clear career paths and performance indicators for each employee.
  3. Design employee onboarding programs that help new hires settle in.
  4. Check on each new hire after they’ve been in the role for a few weeks.

3. Overall Retention Rate

The overall retention rate helps you understand what percent of employees choose to stay in your company during a given period. It points to the health and cultural atmosphere of the organization. To increase the employee retention rate:

  1. Screen thoroughly during the hiring process and do not hire out of urgency.
  2. Offer competitive pay, perks, and benefits. Keep a tab on the averages in your industry.
  3. Measure and work on your employee engagement scores.
  4. Create opportunities for growth within the organization.
  5. Collect 360-degree feedback on managers. Give them pointers to improve their relationship skills if needed. Managers can contribute to as much as 75 percent of voluntary turnover.

4. Voluntary Turnover Rate

This metric tracks the rate at which employees voluntarily quit the organization due to various reasons, like compensation, conflicts with peers/managers, a negative work environment, lack of job satisfaction, new opportunity at a better job, etc. To control voluntary turnover:

  1. Create a transparent culture where employees can voice their challenges and concerns.
  2. Recognize and reward each worker’s contributions.
  3. Stay competitive with other companies in terms of pay, perks, culture, and opportunities.
  4. Find out what makes your star employees stay, and try to recreate the experience for others.
  5. When employees leave, find out why and work on fixing the issue(s) for future employees.

5. Involuntary Turnover Rate

This is the rate at which employees are involuntarily terminated. To steer this metric in your favor:

  1. Improve your hiring process. Try to avoid hiring people you’ll have to fire in the first place.
  2. Talk to your hiring managers and find out the top reasons for involuntary turnover, and then start addressing them.
  3. Invest in training people to close skills gaps.
  4. Build a culture that promotes mentorship and helpfulness.

6. Retention Rate of Star Employees

This metric shows whether you are retaining top performers or not. To retain more star employees:

  1. Share your vision and invite each employee to be a part of it.
  2. Reward and recognize significant contributions.
  3. Communicate opportunities for growth.
  4. Create meaningful mentorship programs.
  5. Focus on team-building and engagement. Employees stay for their coworkers and the culture more than for their jobs.

7. Retention Rate of Below-Average Performers

This metric tracks the percentage of below-average performers who stick with your company during a given period.

  1. If you notice that you are retaining a lot of below-average performers, see what you are doing wrong or what is attracting them. Fix it.
  2. Work with your below-average performers to bring out their best work through training, mentorship, role changes, or whatever else it takes.

8. Average Employee Tenure

The average period of time for which an employee stays at your organization. Increasing the average employee tenure enables you to better regulate retention and turnover rates. Here’s what makes people stay:

  1. The relationships they build over time within the organization.
  2. Organizational values that resonate with them.
  3. Opportunities and challenges that help them grow as professionals.
  4. Competitive compensation packages.

If you consistently listen to your turnover metrics, you’ll be able to build a powerful employee experience that drives engagement, improves your customer relationships, and positively impacts your business revenue.

About Freshteam

Freshteam is simple and intuitive HR software that helps you attract, hire, and onboard superstars. More than 4500 businesses around the world trust Freshteam to streamline their HR processes and offer their candidates, new hires, and employees an impeccable experience. Freshteam covers everything from the day you first contact candidate to the day you offboard them (if that day comes!). You can sign up for a free trial to explore more, or visit for more information.

This article by Freshteam is built on the original article that first appeared on the Freshteam blog. regularly features reviews, articles, and press releases from leading businesses. This featured article may include paid promotion or affiliate links. Please make every effort to perform due diligence when selecting products and services for your business or investment needs and compare information from a variety of sources. Use this article for general and informational purposes only.

Freshteam, a part of the Freshworks product portfolio, is a smart HR software that helps with handling recruiting, onboarding, time off, and employee information, all in one place. It is intuitive, easy to use, and affordable: a perfect fit for growing businesses. Freshteam helps attract top talent from multiple channels, as well as interview, track, hire, and onboard them with ease through its numerous features that are designed to aid HR managers at every step of the recruitment process.