Measures the percentage of employees who left the company out of their own initiative in a given period, ex: resignation.

Calculation steps:

1. choose a time frame
2. identify the number of employees that left the company from their initiative within the time frame
3. identify the average number of employees within the company
4. divide the number of employees that left from their initiative by the average number of employees
5. express the value as a percentage

When it comes to resignation one of the main reasons provided in exit interviews is “competitive pay”.

This reason should be treated with care as it can be a political reason. It gives to the employee an unbeatable reason and at the same time it keeps the door open. Here are some scenarios about how reality could look like:

1. The employee might not want to get into disputes about the real reason (usually manager or colleague related issues)
2. The employee feels that he told you his problems so many times and nothing happened so now he chooses to be political.
3. The employee wanted a raise which didn’t turned out as hoped
4. He is leaving because of noncompetitive pay