Calculating the turnover for avoidable separations is another method for computing the turnover rate. This method yields the most significant measure of the effectiveness of a human-resource program since it represents the portion of employee turnover that management has the most opportunity to control. This remainder is divided by the total midmonth workforce to determine the avoidable separation turnover rate. One problem with the turnover rates already discussed is that they mask the usual higher turnover of newer employees. Not only is the quantitative rate of turnover important, but the quality of personnel leaving an organization also is important.
Turnover represents more than a monetary loss.
Indeed, those who leave may be the company's most valued human resources. Because of the impact they have on an organization, special attention should be given to turnover among managers, professional personnel and those employees with unique skills. Replacing these employees can be expensive and time-consuming. In order to apply the most appropriate turnover reduction strategies, management must first determine the cause of turnover behavior. To facilitate this, management needs to establish appropriate turnover categories.