Turnover rate measures how often employees leave an organization over a given period.
Turnover is a business metric with people consequences. In SMBs, turnover is especially costly because knowledge is concentrated and backfills pull leaders away from growth. Turnover can be voluntary (resignations) or involuntary (terminations), and it’s useful to track regrettable turnover separately, meaning departures you would have strongly preferred to prevent.
Turnover should be analyzed with context. Look at where it’s happening (team, role, manager), who it affects (tenure, performance level), and why (exit and stay signals). Pair turnover trends with engagement and workload data to spot risk earlier. In hybrid teams, connection, visibility, and growth clarity are common drivers.
Commonly confused with: attrition
Attrition is often used as a synonym for turnover, but it sometimes implies voluntary departures or natural reduction without replacement. Turnover is the broader metric that includes all departures. Define terms internally so reporting stays consistent.
Workleap field notes from SMB clients
- What Workleap clients are saying: From conversations with our SMB clients, spikes in turnover are often what pushes them to build a consistent listening rhythm instead of ad hoc surveys.
- Why it matters: Turnover is easier to prevent than recover from, and regular listening helps you spot risk earlier.
- In practice: Stingray wanted earlier signals to reduce retention risk and avoid surprises. They created a steady listening cadence and acted on recurring themes. The result was clearer priorities and better prevention before issues escalated. See: How Stingray transformed its culture and reduced turnover with Workleap Officevibe.
A common formula is employees who left during a period divided by average headcount for that period. Track voluntary and involuntary separately. Add regrettable turnover to focus on departures that matter most.
It varies by industry and role type. Your trend over time is often the most useful benchmark. A spike in one team is usually more actionable than a company-wide average.
Unclear growth paths, inconsistent management, workload strain, and pay fairness concerns are common. Hybrid teams can also struggle with inclusion and visibility gaps. Operational friction and constant priority changes can quietly drive exits.
Improve manager habits, clarify expectations, reduce workload bottlenecks, and strengthen growth conversations. Use recognition and feedback consistently. Run stay interviews to catch issues before resignations.
Watch engagement dips, 1:1 signals, reduced participation, and changes in behavior. Combine survey data with manager observations and simple metrics like absenteeism. Early action is almost always cheaper than backfilling.
