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Whether referred to as the “employee turnover rate,” “staff turnover,” or “workforce turnover,” the concept remains the same—and so do its consequences. Employee turnover has become a growing concern for employers, in a context where people change jobs more frequently than in the past, and where cost control is more crucial than ever.
So how can organizations reduce their turnover rate? When is turnover considered “too high”? And should companies aim for zero turnover at all costs? Let’s break it down.
Turnover is an HR metric that measures employee rotation within an organization. In other words, it shows the number of employees leaving compared with the number of new hires.
Departures can take several forms:
Some departures are expected (e.g., retirements), some can be anticipated months in advance, and others are abrupt. Each has different causes and different impacts on teams and the company.
💡 Note: Absenteeism is not considered turnover. However, absenteeism remains a valuable indicator of workplace climate and can indirectly affect turnover.
Arrivals, on the other hand, refer to external hires. Internal mobility (an employee moving to another role or department within the company) is not counted in turnover calculations.
Managing turnover is a major challenge because it affects financial health, performance, employee well-being, and even employer brand.
According to the Teale Employee Mental Health Barometer, 1 in 3 employees has considered leaving their company to protect their mental health. This reality reinforces the need to understand and manage turnover and its consequences.
When departures are frequent and a stable workforce is needed, recruitment becomes inevitable—and costly:
According Deloitte and Maalakoff Humanis (Mental health and employers, The case for investment, Barometer 2021), mental health costs companies €3,000 per employee per year, of which €1,200 per employee per year is linked directly to turnover.
Turnover is also a driver of lower productivity. Even a qualified new hire takes time—sometimes months, sometimes years—to reach the same productivity level as experienced employees.
Meanwhile, managers and colleagues must dedicate time to onboarding, explaining processes, and answering questions—time taken away from their core work.
Periods of transition, when a position remains vacant, increase the workload of remaining employees, further reducing team efficiency.
Turnover also threatens team cohesion, trust, engagement, motivation, and well-being.
A high turnover rate also sends a negative signal externally. Partners may view it as a sign of instability and unreliability.
And when it comes to recruitment, the risks grow: turnover undermines employer attractiveness, creating a vicious cycle. Both young talents and experienced professionals are more likely to be wary of a company unable to retain its staff.
💡 Good to know: A relatively high turnover rate is not always negative. Replacing underperforming employees with more engaged and skilled ones can benefit the company. Likewise, replacing a retiree with a younger talent can bring fresh perspectives.
The formula is straightforward:
[(Number of departures in year N + number of arrivals in year N)/2)/Number of arrivals in year N] x 100.
This calculation is usually done annually to allow for comparisons.
In France, the average turnover rate is around 15%. A higher figure indicates significant rotation. However, interpretation must be nuanced: turnover varies greatly depending on the industry (e.g., seasonal activities), workforce age, employee tenure, and job market conditions.
Knowing turnover is high is one thing. Reversing the trend is another. According to the Teale Employee Mental Health Barometer, 23% of employees are in a critical or at-risk mental health state—making prevention a key priority.
The first step is to analyze the causes of departure, whether voluntary or involuntary.
Questions to explore include:
Answering these questions is the foundation for reducing turnover.
Salary and financial benefits matter, but retention depends on more. Companies can act at several levels to foster engagement and well-being:
At teale, we support organizations in this mission with our comprehensive mental health platform. By offering training modules, workshops, resources, and access to partner therapists, teale equips both employees and HR teams to improve well-being at work—a key driver of retention and long-term performance.
