Turnover refers to human resource movement within organisations, that is, employees moving from job to job through transfer, promotion or relocation. It is in this that we can see the effectiveness of HRM programmes and activities.
Turnover analysis can provide HR managers with useful information about the likelihood of the future labour supply and the required skills, competencies and experience.
Effective management of turnover can identify problem areas and help HRM to develop to suitable strategies.
With regards to the dollar figure on what staff turnover costs New Zealand businesses, this is quite difficult as it varies from company to company depending on the level of position and industry you looking at. It is generally considered a rule of thumb that losing a member of staff who has been employed in your organisation for a minimum of 12 months will cost you three times their salary.