Definition
The number of active separations over the past three months has been annualized as a percentage of the number of persons on duty at the end of the month; the lower the CVD caliber, excluding direct labour and casual labour, is the better.
In detail
Active turnover rate (Retention) is a metric measuring voluntary employee turnover, calculated as the annualized number of voluntary departures in the past three months divided by the headcount at month-end, with the CVD scope excluding direct labor and temporary workers. It reflects the organization's talent retention capability; lower values are better. Unlike total turnover rate, it focuses on voluntary departures, better reflecting employee satisfaction. Its output is monthly or cumulative turnover rate data, used for talent management decisions.
Example in practice
When a company notices an increase in voluntary turnover, HR analyzes exit interview records to identify primary reasons, such as insufficient compensation competitiveness or limited career development. Management develops retention plans accordingly, such as adjusting compensation structures or providing training opportunities. By monitoring this metric, the company can intervene promptly and reduce the risk of losing key talent.