What is the meaning / definition of Staff Turnover in the hospitality industry?

Also known as turnover rate or employee turnturnover rate.

The term refers to the annual average percentage of employees who leave the business during a certain amount of time. The staff turnover can be affected by both the employer or the employees. In general companies should aim to keep the staff turnover as low as possible.

How can staff turnover be calculated?

Employee turnturnover rate = (Number of employees that left during the given period / Average number of employees during the period) x 100

Staff turnover can be split into voluntary turnover and involuntary turnover.

Voluntary turnover refers to employee actively choosing to leave an company. Voluntary turnover happens due to many reasons, some of which are better job opportunities elsewhere, conflict within the workplace, disengagement, a lack of motivation etc.

Involuntary turnover is when an employer chooses to fire an employee, due to negative behaviour possibly due to poor performance or other reasons.

Synonyms

  • Employee turnover
  • Turnover rate