DECA Human Resources Management Practice Exam

Turnover measures the number of employees who leave an organization compared to how many are added within a specific time frame, making it an essential metric for assessing workforce stability and management effectiveness. It reflects not just resignations but also dismissals, retirements, and other forms of separation from the company. A high turnover rate can indicate issues such as employee dissatisfaction, poor management, or inadequate compensation and benefits.

This measurement is vital for human resources as it helps in understanding the overall health of the workforce and can lead to strategic initiatives aimed at improving retention. Tracking turnover enables organizations to identify patterns and take corrective actions to foster a more engaged and productive work environment. The other options do not accurately capture the concept of turnover; they focus on aspects unrelated to the retention and movement of employees within an organization.