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Showing posts from February, 2014

Why is Your Company a Revolving Door? - Turnover and ROI series: Part I-

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Rate of Turnover Turnover (TO) has always been a sensitive issue. It is usually known as bad since one often refers to high turnover whenever talking about the subject. Definitely, I would agree with the school of thought under which any input of new blood way over 10%  is detrimental to any company. Is there an ideal turnover rate? It is interesting to see how some HR or HR-related professionals or practitioners in some sectors consider their TO rate of 85 to 150% normal or standard! Others think that a 5 to 8% rate is high. Adversely 0% TO for a long period of time cannot be good for any organization: it is not stability, it is stagnation.

According to the SHRM 2012-2013 benchmarking database, the average turnover was around 10%, with the highest being in services of accommodation, food and drinking places at 30% and five year average tenure, and the lowest being in the arts, entertainment and culture industry at 5% TO and average of nine year tenure. Placing at 10% are the financ…