Understanding 4 Types of Employee Turnover

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Employee turnover can be great!

Employee turnover can be an opportunity to hire better culture fits or to take a hard look at your current talent management strategy. But that’s only if you take the time to understand why, and what types of employees leave.  Keep reading to learn more about the 4 types of employee turnover. You’ll also find some simple suggestions to get you started on the road to retention!

Employee Turnover

Employee turnover can cost a ton of money! Some studies suggest that the cost of turnover can be 2X an employee’s salary. Depending on the size of your organization, the number of people you lose annually, the types of roles and the average salary of lost talent, your employee turnover can be costing you a fortune. No wonder we get so many requests from prospects and customers to help them course correct!

Don’t forget to download the employee retention worksheet that goes hand in hand with this blog!

Download our Retention Worksheet!

Turnover is your chance to hire better fits and strengthen your teams.

Just like a forest fire that paves the way for young trees to reach the sun, employee turnover is your chance to bring in new, productive talent who are great fits. But only if you take the time to analyze why and which types of employees turnover. Even if you’d rather forget about (some of) all the folks who’ve left in the last year, it’s important to understand who is leaving and what is driving employee turnover.

Whether voluntarily or involuntarily, there are generally two factors that impact employee turnover.

  1. Culture Fit Years of research shows that the #1 reason an employee stays with a company is Culture Fit. Organizational psychologists have even shown that 4 of 5 reasons an employee leaves an organization is due to their relationship with their direct manager!
  2. Job Performance – After Culture Fit, an employee’s ability to succeed in their role and consistently deliver results will determine how long an employee sticks around.

Of course employee turnover is never as simple as that! It’s usually a combination of the two factors above that determine an employees long term success. Let’s check out how those two factors combine!


Of course employee turnover is never as simple as just Culture Fit or Job Performance! It’s usually a combination of those two factors that determine an employees long term success. Let’s check out how those two factors combine. Once you know what’s driving high turnover you’ll know where to focus your efforts.

Reason #1: High Culture Fit / Low Performance
They mesh with your culture, but just aren’t getting the job done.

What you can do: Look closely at the role description and interview process, as well as education and coaching, to identify where improvements can be made to better vet & support individuals like this.

Reason #2: High Culture Fit / High Performance
Retaining these people is the key to success. Losing them hurts so pay close attention when it happens.

What you can do: Dig in to understand why this individual chose to leave; was it unavoidable (a move to a new city?), or are there things that can be changed to keep this kind of person from leaving?

Usually the reason is specific (Hint: If the pay is fair, it’s never about money!). Usually these employees turnover because they do not feel well aligned to the operational strategy at the organization. There’s something about the way you or your managers are communicating, making decisions, or rewarding these employees that just isn’t a fit.

To get a better sense for what’s missing you will want to start with a profile of your team’s core values. You can learn more about that here.

Reason #3: Low Culture Fit / Low Performance
This type of employee turnover is F!@#ING Awesome! These employees are culture and productivity killers.

What you can do:  These employees waste valuable time and money, even before they churn. Look at this turnover as an opportunity to learn something so you don’t make the same kind of mistake again.

Consider building a hiring profile that’s based on your current top performers or long tenured employees you just can live without. It might seem silly to focus on culture fit first, but the truth is: a great culture fit whose smart can learn almost any skill. A bad culture fit will never come around, no matter how skilled they are.

Reason #4: Low Culture Fit / High Performance

This is a tough one. On one hand they produced for you, but on the other hand they were a terrible fit and that may have impacted the rest of the team. 

What you can do: Losing a high performer should cause you to take a closer look. In what way was this individual incompatible with your culture? How did you evaluate for culture fit during the hiring process? Could you have been more flexible in working with this employee?

Categorize your turnover! Download our Retention Worksheet!

Just download our Culture Fit / Job Performance Worksheet. You’ll be able to:

  • Record Job Performance and Culture Fit details for employees
  • Use a familiar technique to visualize that information
  • Get specific about the type of turnover at your company and what you can do about it.

Culture Fit is important when hiring, but
how do you measure it?

Culture Fit comes down the the way an individual’s personal values align with the aggregate values of the company as a whole. To measure Culture Fit, you need insight into the personal values of every single employee in your organization (what is important to them at work). With this data, you can actually quantify how candidates align with your culture. 

Get a handle on your company culture using software

Company culture and turnover are no different than any other area of your business, you have to measure them before you can manage them.

RoundPegg brings a layer of analytics to company culture management and hiring. Our software makes it easy to determine what your unique culture is. Everyone takes our 7-minute Assessment and the software does the rest. Once you know your culture, you can hire better culture fits because you can predict how a candidate will fit your company culture, the team, and even the manager (job candidates take the same Assessment).

Get a free values based profile for any team in your organization!



Want to see RoundPegg in action? Join us any Friday for our 30-minute Live RoundPegg Demo Webinar at 2pm Eastern

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