Turnover is a word you hear in every company today. It simply means the movement of employees coming in and out of a company. For candidates, understanding it is important when looking for stable employment. For HR professionals and managers, in turn, it is a key tool for retaining talent and reducing costs.
What is turnover?
This is the total number of departures from the organisation over a certain period. The turnover rate is expressed as a percentage and shows what proportion of employees have left the company compared to the total number of employees.
At Talent Solutions, we regularly see cases of companies struggling with high turnover rates. It’s an issue that affects not only productivity, but also team morale. According to our internal data, the average turnover rate in Slovakia is 11-20% per year, while in some sectors, such as retail, it can be significantly higher.
Voluntary vs. involuntary turnover
Voluntary turnover
This type of departure is initiated by the employee. The reasons may be different:
- Seeking better pay conditions.
- Dissatisfaction with working conditions, poor relations with a supervisor or an unhealthy company culture.
- The need for career development.
- Personal reasons such as change of residence.
According to our surveys, as many as 6 out of 10 employees surveyed said they left their job because of their manager.
Involuntary turnover
In this case, the employer initiates the departure. The most common reasons are:
- Failure to meet expectations and deliver results.
- Violation of work discipline.
- Organisational changes and abolition of the position.
Too high a rate of involuntary departures can also signal poor recruitment processes or insufficient support for new employees.
Internal vs. external turnover
External fluctuation
It occurs when an employee leaves the company altogether. Most often, these are terminations during the probationary period. This type of turnover is the most costly for the company because it requires the entire process of recruiting and training a new person. At Talent Solutions, we know that the average time to find and fully train a new employee in Slovakia is on average 6 weeks to 3 months, depending on the position.
Internal turnover
In this type, the employee changes position within the same company. It can be a promotion or a transfer to other departments. This type of turnover is usually positive for the company. It signals opportunities for growth, promotes talent development, and helps retain employees.
How to use turnover to your advantage?
As a candidate , try asking about the turnover rate during the interview. If the company says it has a low rate, that’s a good sign. However, if a lot of people are leaving, ask about the reasons.
It is crucial for HR specialists and managers to analyse the reasons for turnover, not just the percentage. Voluntary departures speak about the state of the company culture, while involuntary departures speak about the state of the business and the effectiveness of the recruitment processes.
At Talent Solutions, we believe that turnover is not just a number, but a mirror that reflects the state of the entire organization. Analyzing and managing it properly helps build strong teams and create an environment where people work well. If you need help analyzing your company’s turnover or are looking for new talent, we’re here to help.
Are you looking for a new career challenge or need help with recruitment in your company? Contact Talent Solutions to find the right solution.
