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Employee turnover is the process of replacing one worker with another for any reason. A turnover rate is the percentage of employees that a company must replace within a given time period. This rate is a concern to most companies because employee turnover can be a costly expense, especially for lower-paying jobs, which typically have the highest turnover rates.
A small organization replacing an. employee in a position with a 300% annual turnover rate will. have turnover costs less than the 10th percentile (see Appendix A), while a large. organization recruiting for a position with a 15% annual turnover rate will have. turnover costs above the 90th percentile. The majority of studiesâ¦.