what actually mean turnover in business.
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It has different meanings depending on context, but similar meanings in each case:
1. How often workers quit and new workers are hired. A company with 10 people and on average one leaves each year has 10% turnover. A fast food restaurant that keep workers around 4 months on average before they quit/get fired would have 300% turnover. It’s a measure of stability/quality/happiness of workplace, on company’s end it can mean high recruiting/training costs if turnover is high.
2. Turnover can also apply to inventory and how fast inventory is sold and replaced by new inventory. A grocery store’s produce section will have very high turnover with new produce put out daily and produce that doesn’t sell within a few days being tossed as it goes bad. It might take 6 months to sell through a 12-pack case of some less popular BBQ sauce flavor.
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