A key human resources metric reflects the rate at which employees leave an organization over a year. This metric is typically expressed as a percentage and provides insights into workforce stability. For example, a company with 100 employees that experiences 15 departures in a year would have a rate of 15%. This number represents the proportion of the workforce that needs to be replaced annually.
Understanding this metric is vital for strategic planning. High figures can indicate issues with compensation, company culture, or management practices, leading to increased recruitment and training costs. Historically, organizations have used this data to identify areas for improvement, benchmark against industry averages, and implement retention strategies. Lowering this percentage can lead to significant cost savings and improved organizational performance.