No. Some turnover is healthy - underperformers leaving, role mismatches resolving, fresh perspectives joining. The goal isn't zero turnover but controlling it. High turnover of your best people is concerning; turnover of poor performers may be beneficial.

What is a Employee turnover?

Q: How is employee turnover calculated?

Turnover rate is typically calculated as: (Number of separations during period ÷ Average number of employees) × 100. For example, if 10 employees left during a year and average headcount was 100, turnover rate is 10%.

Q: What is a normal turnover rate in Australia?

Average turnover varies by industry. Overall Australian turnover is typically 15-20% annually. Hospitality and retail often see higher rates (30%+). Professional services may see lower rates (10-15%). Compare to your industry benchmark.

Q: What is the difference between turnover and attrition?

Turnover typically includes all separations (both where replacements are hired and where positions are eliminated). Attrition often refers specifically to positions not being refilled, resulting in workforce reduction. The terms are sometimes used interchangeably.

Q: What causes high turnover?

Common causes include: poor management, lack of growth opportunities, inadequate compensation, poor work-life balance, lack of recognition , toxic culture, and poor onboarding . Most causes are preventable.

Updated 28 Jan 2026 • 5 min read

Employee turnover is the rate at which employees leave an organisation and are replaced. It includes both voluntary departures (resignations) and involuntary separations (terminations, redundancies). High turnover is costly and may indicate workplace issues; some turnover is normal and healthy.

Understanding employee turnover

Employee turnover measures how many people leave your organisation over a given period. While some turnover is inevitable and healthy, excessive turnover is expensive and disruptive. Understanding why employees leave is the first step to developing an effective retention strategy.

Turnover types

Voluntary (resignations)
Involuntary (terminations)
Functional (positive)
Dysfunctional (negative)

Why it matters

Replacement costs
Lost productivity
Knowledge drain
Team disruption

Types of turnover

Understanding different turnover types helps identify where to focus:

Turnover categories

Voluntary: Employee chooses to leave

Involuntary: Employer ends employment

Functional: Underperformer leaves (positive)

Dysfunctional: Good performer leaves (negative)

Avoidable: Organisation could have prevented

Unavoidable: Outside organisation's control

Common causes of turnover

Poor management: Bad bosses drive people away
Limited growth: No career development opportunities
Inadequate pay: Below-market compensation
Work-life imbalance: Unsustainable workloads
Lack of recognition: Feeling unappreciated
Poor culture: Toxic or misaligned workplace

The cost of turnover

Research suggests replacing an employee costs 50-200% of their annual salary when you factor in recruitment, training, lost productivity, and opportunity costs. For a $70,000 employee, that's $35,000-$140,000. High turnover is extremely expensive.

Impact of high turnover

Direct costs

Recruitment expenses
Training investment
Severance payments
Admin time

Indirect costs

Lost productivity
Knowledge drain
Team morale impact
Customer relationships

Reducing turnover

Invest in managers

Train managers to lead, provide feedback, and develop their people. Manager quality is the biggest factor in voluntary turnover.

Create growth paths

Provide career development, learning opportunities, and clear progression paths. People stay where they can grow.

Pay fairly

Ensure compensation is competitive with market rates. Underpayment is an easily fixable turnover cause.

Key takeaways

Employee turnover measures how many people leave your organisation. While some turnover is healthy, high turnover is costly and disruptive. Focus on the main drivers: management quality, growth opportunities, fair pay, and work-life balance. Track your turnover rate and compare to industry benchmarks.

RosterElf's staff management helps Australian businesses reduce turnover through fair scheduling and improved employee experiences.

Frequently asked questions

How is employee turnover calculated?

What is a normal turnover rate in Australia?

What is the difference between turnover and attrition?

Is all turnover bad?

What causes high turnover?

Written by

Georgia Morgan

Georgia Morgan is a former management executive with extensive experience in organisational strategy and workforce management. She joined RosterElf to support strategic planning and operational development, bringing a pragmatic, people-focused perspective shaped by years of leadership in complex environments.

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Related resources

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Staff management software Employee management features Rostering software features Time and attendance tracking Turnover rate Attrition Involuntary turnover Retention strategy

General information only – not legal advice

This glossary article about employee turnover provides general information about Australian employment law and workplace practices. It does not constitute legal, HR, or professional advice and should not be relied on as a substitute for advice specific to your business, workforce, or circumstances.

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