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Meaning & Definition

Employee Turnover

Employee turnover is the term applied to the cycle of hiring and firing that happens within an organization. It is one of the most important metrics in data-driven recruiting. A company is said to have high employee turnover rates when their employees routinely leave or are fired, resulting in the need to hire again.

To calculate monthly employee turnover rates, divide the number of employees who left in that month and divide by the average number of active employees during the same time period.

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