Employee turnover is a critical concern for businesses of all sizes. While turnover is often seen as a singular challenge, it actually comes in various forms, each with its unique causes and consequences. 

Here are three types of employee turnover and how to manage them.  

Voluntary turnover  

Voluntary turnover is when an employee decides to leave a company. This type of turnover often has a great impact on a company because they are losing an employee with no performance issues that they will now have to replace.  

When an employee voluntarily leaves a company, it is often because they find an opportunity more suited to their lifestyle or career goals. While voluntary turnover may be difficult to navigate at first, it ends up being better for both the company and the employee in the long run.  

How to manage voluntary turnover 

Communication and transparency are essential to managing voluntary turnover. During 1-on-1 meetings, make sure managers are asking employees about their thoughts on compensation, work culture, career progression, etc. If you feel like employees are not speaking up about their true thoughts, try conducting a survey to help get candid answers.  

To help reduce voluntary turnover, employers need to make sure they are staying competitive with their compensation, flexibility, and benefits. This will help keep top performers from leaving your company for a new opportunity.  

Involuntary turnover  

Involuntary turnover means that the company decides to end employment instead of the employee. This is often caused by poor performance from an employee.  

While it is good to have a low involuntary turnover rate, employers should never hold back from letting someone go who is not fit for the position.   

How to manage involuntary turnover  

Managing involuntary turnover means investing more time in hiring the right person for a role. While it is inevitable to hire the wrong person for a position, there are changes that can be made to help decrease the chances of it continuing to happen.  

Leaders should go through their job descriptions, interview process, and onboarding to see if any changes need to be made in order to make sure the right person is being hired.  

Internal transfer  

Internal transfers are when employees are taking on new roles, but within your company.  

Here are some causes of internal transfers:  

  • Desire to develop skills in a different area 
  • Burnout in current role
  • Difficulty reaching goals in current position 
  • Belief that a different role better suits their career progression  

How to manage internal transfers  

If you have an employee that wants to change roles in your company, it is important to discuss with them why they want this job change and what they believe the results will be.  

While it is not a bad thing to move people around until they find a department they can be successful in, you want to make sure the employee is moving with good intentions. If you have an employee that genuinely wants to be successful but is having difficulty in their current position, then it can be good to have them try something new. However, if an employee is just unmotivated and burnt out, it is very likely that they will continue to feel unmotivated in their new role.  

In conclusion, employee turnover is not a one-size-fits-all challenge; it’s a multifaceted issue that demands a tailored approach. By recognizing the types of turnover – voluntary, involuntary and internal – businesses can figure out what is causing the turnover and how to manage it.