The Average Turnover Rate is a key indicator of how effective and successful your company is in terms of recruiting, retaining and managing its staff. It refers to the percentage of employees who leave their job within a year or less. A high turnover rate can be damaging for a business’s bottom line, as it increases costs associated with recruiting and training new staff members, in addition to the disruption caused by losing experienced staff. On the other hand, a low turnover rate indicates that your processes are working well and you have managed to attract and retain talented employees. Calculating your turnover rate is important in assessing the current health of your workforce and taking steps to address any underlying issues.