This metric is based on the Global Reporting Initiative (GRI) G4 Guidelines. It covers one of the reporting requirements of Indicator G4-LA1 - 'Total number and rates of new employee hires and employee turnover by age group, gender and region'. In addition this Indicator asks for the rate of new employees turnoverhires by age group, gender and region and total number and rate of employee hires during the reporting period, by age, gender and region.
GRI's definition of employee turnover is "employees who leave the organization voluntarily or due to dismissal, retirement, or death in service."
The number, age, gender, and region of new employee hires of the organization can indicate the organization’s strategy and ability to attract diverse qualified employees. This information can signify the organization’s efforts to implement inclusive recruitment practices based on age and gender, and the optimal use of available labor and talent in different regions.
A high rate of employee turnover can indicate levels of uncertainty and dissatisfaction among employees, or may signal a fundamental change in the structure of the organization’s core operations. An uneven pattern of turnover by age or gender can indicate incompatibility or potential inequity in the workplace. Turnover results in changes to the human and intellectual capital of the organization and can impact productivity. Turnover has direct cost implications either in terms of reduced payroll or greater expenses for recruitment of workers.
This metric is looking for the total rate (%) of employees leaving the company during the reporting period:
For WikiRate researchers:
Companies who align reports to GRI’s Sustainability Reporting Standards often include a GRI Content Index or Annex where GRI disclosures, with GRI codes, are listed.
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Use G4 codes, G3 codes or keywords to quickly find values, keeping in mind that some companies report on the metric using different terms, e.g. G4-LA1 or LA1, employee turnover rate
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Global Reporting Initiative compliance guidance for companies:
To calculate the total rate of employee turnover during the reporting period G4-LA1-b:
Identify the employee turnover (number of employees in a workforce that leave) during the reporting period.
Identify total employee numbers at the end of the reporting period.
Calculate the the total rate (%) of employee turnover.