Staff turnover is usually referring to the fluctuations in the number of staff members. Basically, if staff members leave the company the turnover increases. The amount of turnover a company has will really depend a lot on the business itself. High turnover rates are usually not a good thing for any type of business. It usually means there is a problem in the hiring process, or problems with the company itself.
Staff turnover can also relate to monetary turnover that a member of staff generates. This is true if the employees are hired to work in sales. In this case, a large turnover is actually a good thing.
It usually doesn’t matter the type of business, it is more related to certain aspects of the business, including:
• Management environment
• Experience of staff
• Market segment
If you want to learn more about where the turnover rates should be, it is important to discuss it with market information agencies. They will be able to give you an idea based on current market research information. A good way to determine if your turnover is where it should be is by comparing yourself with your competitors.