Employee turnover rate is a measure of how many employees leave an organization over a period of time. It’s calculated by dividing the number of employee separations in a period – such as one month or one year – by the average number of employees during that same length of time. To put it simply, it measures how well a company is retaining its staff. High turnover rates can indicate a lack of job satisfaction among current employees, potentially leading to lower morale and decreased performance. On the other hand, low turnover means that employers are successfully keeping their workforce content and engaged.