Employee turnover can simply be presented as the percentage of old employees who are replaced by new workers over the length of one year. Evidently, as an employer, you can assess departure for multiple reasons: evaluating the specific cases, or “cost-to-hire” measured in FTEs are such instances. There are many types of employee turnover:

• Involuntary turnover: termination of an employee;
• Voluntary turnover: voluntary termination of the employment by the employee;
• Desirable turnover: new employees add new skills to the workforce;
• Undesirable turnover: skills are lost with the termination/resignation of the employee.

To be simply put, turnover can be the result of resignation or termination. For example, accepting employment at a different organisation, relocation, or personal reasons are all grounds for resignation. Similarly, employees can be terminated on the basis of: failure to perform adequately, disregard of company policies, or even absenteeism are such instances.The cost in replacing terminated/resigned employees is generally calculated in FTE percentage. In other words, the expenses related to finding, replacing, training, and preparing a new resource in comparison to one Full Time Equivalent.

Read more about how successful organizations treat their employees.

References:

• https://smallbusiness.chron.com/employee-turnover-definitions-calculations-11611.html#:~:text=Employee%20turnover%20refers%20to%20the,to%2Dhire%20for%20budget%20purposes.