Employee turnover refers to the rate at which employees leave a company and are replaced by new hires. This can happen for various reasons, including retirement, resignation, or termination. High turnover can indicate issues within the workplace, such as low job satisfaction or poor management practices. Managing employee turnover is crucial for businesses, as it can lead to increased costs related to hiring and training new staff. Companies often analyze turnover rates to identify trends and implement strategies to improve employee retention, fostering a more stable and productive work environment.