Key Performance Indicators (KPI)

61

Employee churn rate

Strategic perspective

Employee perspective

Key performance question this indicator helps to answer

How well are we retaining our staff?

Why is this indicator important?

Attracting, recruiting, training and developing talented staff takes time and costs money. This is why you want to make sure that once you have found and trained employees, you don’t lose them too quickly.

Replacing employees is an expensive business. There is the cost of recruiting (in 2010 the US-based Society for Human Resource Management reported that it costs an average of $7,123 to hire an employee) as well as training costs and, even for the best educated or most professionally qualified staff, a cost associated with their getting up to speed ...