[Excerpt] Key Findings:
- Traditional turnover ratios–the number of employees leaving versus the total number in a unit—may not accurately describe how employee departures affect business unit performance.
- Traditional measures of turnover focus primarily on the quantity of employee exits, but fail to measure important qualities of turnover events.
- Some turnover scenarios tend to be more damaging than others, such as if a unit loses proficient workers, loses workers all at once, gains relatively less proficient workers, or loses workers from core functions rather than peripheral ones.
- To effectively link turnover to performance, metrics should account for when employees leave and from which positions, and accurately reflect the capabilities of exiting, remaining, and entering employees.
- The authors propose a new measure of “capacity” that targets both the quantity and qualities of turnover, allowing practitioners to improve the information value of attrition-related metrics.