What is Turnover?

Turnover, in a business context, refers to the rate at which employees leave a company and are replaced. It is commonly used as a metric to assess employee satisfaction, company culture, and the effectiveness of human resources practices. High turnover can indicate problems within the organization, such as low morale, poor management, or uncompetitive compensation. Conversely, low turnover can suggest a positive and stable work environment. Turnover can also refer to other contexts such as inventory turnover, which measures how quickly a company sells its inventory.