Employee Turnover

Definition: Employee Turnover is the process of replacing one worker with another for any reason. The percentage of employees which an organization has to replace within a time priod (year) is called ET rate.
There are considerable costs associated with replacing employees in any job, including administration, severance and legal costs for the person leaving the job/company as well as advertising, interviewing, hiring, training costs for the new employee. Also there may be a loss of productivity, talent and knowledge during the replacement process.
That's why employee retention is an important issue for any HR department.

More on employee turnover. More on retention: Employee Loyalty, Employee Retention, Employee Stock Ownership Plan.