Managing Human Resources, Eight Edition

What Are Employee Separations?

An employee separation occurs when an employee ceases to be a member of an organization.6 The turnover rate is a measure of the rate at which employees leave the firm. Well-managed companies try to monitor their turnover rate and identify and manage causes for turnover. The goal is to minimize turnover and the costs of replacing employees. Replacement costs, particularly for highly skilled positions, can be surprisingly high. For example, replacing a U.S. Navy fighter pilot may cost more than $1,000,000.7 However, multiple turnover rates can be calculated, and it is important to focus on the correct numbers. Exhibit 6.1 presents the basics about calculating turnover rates. An excessively high turnover rate compared ...