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What Is Involuntary Turnover?: The Basics, Explained

Involuntary Turnover

What’s the turnover rate for your organization? Is everyone staying with the company for which a long time? Or does it have a problem with staff retention?

It’s certainly not a good thing if the answer to either question is ‘no,’ then your organization likely suffers from involuntary turnover. Don’t confuse imbalances with voluntary turnover, involuntary turnover is detrimental, but voluntary can be beneficial.

To learn more about involuntary turnover, keep reading to find the basics.

What Is Involuntary Turnover Anyway?

Involuntary turnover is the term used to describe employee departures from a workplace that are not voluntary or desired. It includes the following:

  • dismissals
  • layoffs

It can be any other situation that requires a staff member to leave their job whether they want to or not. Involuntary turnover can impact:

  • productivity
  • morale
  • turnover rates

Companies can attempt to decrease involuntary turnover by offering competitive pay, benefits, and career advancement opportunities to employees.

Overall, voluntary turnover is a critical area for company managers and human resource departments to monitor and address in order to maintain employee performance and morale.

What Are the Different Types of Turnover?

There are three types of turnover in a business: voluntary, involuntary, and replacement. Voluntary turnover occurs when an employee leaves a job of his or her own choice. This can be for a variety of reasons, such as:

Involuntary turnover requires more action from the company due to the employee’s performance or attitude. Replacement turnover is when a company hires an employee to take one that has left’s position.

This could be for various reasons, such as relocation, retirement, or termination. All three of these types of turnover can have impacts on the business, and they all require a certain amount of effort on the company’s behalf to handle properly.

How Much Is the Cost of Employee Turnover?

The cost of employee turnover can be very damaging to businesses, both financially and culturally. On average, the cost of employee turnover can equal up to 6 to 9 months of that employee’s salary.

The cost of replacing a manager-level employee can be as high as 213% of the departing employee’s salary. These costs include not only the price of recruiting new employees but also the following:

  • lost time
  • lower team morale
  • increased workloads
  • lower productivity
  • lower customer satisfaction

When properly managed and accounted for, employee turnover can offer many benefits to a business, but it’s still necessary to understand and prepare for the considerable financial costs associated with it.

Understanding Involuntary Turnover

Involuntary turnover is inevitable in every organization. However, understanding and taking proactive steps to reduce it is essential for a healthy workplace.

Organizations must strive to implement strategies to increase employee retention and engagement in order to positively impact their turnover rate. Thus, creating an optimal environment for long-term success.

For more information on understanding and reducing involuntary turnover, contact us today.

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