Describing the example scenario

Employee turnover refers to the number of employees who leave a company in a given period. Employees leave an organization either voluntarily through resignation or retirement or involuntarily through layoffs, firings, removal of their position, and so on. Employee turnover is sometimes interchangeably discussed with employee attrition or churn. However, these two phenomena are distinct in a key way. With turnover, the employer intends to replace the employees who left. On the other hand, attrition refers to a scenario where the employees who left will not be replaced by the company. In addition, attrition occurs only when employees leave voluntarily to retire, go to school, work for a new company, and so on. On the other hand, turnover encompasses both voluntary and involuntary loss of employees.

Employee turnover results in heavy costs. Hiring new talent and onboarding them effectively is expensive. Research by Allied HR shows that, on average,...