Inventory Turnover Rate Calculation

All retention strategies are not created equal. Or are they? In 2025, companies compete on belonging, not benefits. In the old days, pizza parties and ping pong tables worked. Now you need systematic approaches to keeping talent. Here's 4 levels of employee retention you must understand: LEVEL 1: REACTIVE - PEOPLE QUIT → WE ASK WHY AFTER This is retention theater. Exit interviews where people lie about "new opportunities." Desperate counteroffers that never work. Managers shocked when their best performer gives notice. What it looks like: - Exit interviews only - Last-minute counteroffers - High regret turnover Your HR team is a coroner doing autopsies, not a doctor preventing disease. The fix: Start with stay interviews. Ask people why they stay, what would make them leave, what energizes them. Do this quarterly. Act on what you learn before they're halfway out the door. LEVEL 2: PROGRAMMATIC - ONE-SIZE-FITS-ALL PERKS Pizza Fridays. Wellness days. Ping pong tables. The same tired benefits whether you're 22 or 52, single or supporting a family, engineer or accountant. What it looks like: - Wellness days, swag, offsites - "Engagement" via pizza - Culture defined by events You're throwing spaghetti at the wall hoping something sticks. Spoiler: it doesn't. The fix: Tailor benefits to real needs. Survey by team AND tenure. New parents need different things than empty nesters. Engineers value different perks than salespeople. Stop guessing, start asking. LEVEL 3: STRATEGIC - RETENTION DESIGNED INTO SYSTEMS Now we're getting somewhere. Career paths are clear. Promotions happen on schedule. High-potentials know they're valued. Every process reinforces that growth happens here. What it looks like: - Growth tracks by function - Skills-based promotions - Embedded feedback loops You're not reacting to turnover. You're preventing it through structure. The fix: Align L&D with succession planning. Track mobility rates quarterly. Make internal moves easier than external ones. If someone has to leave to level up, you've already failed. LEVEL 4: CULTURAL - PEOPLE STAY BECAUSE THEY BELONG The holy grail. People stay because leaving would mean losing something irreplaceable. Not perks or pay - belonging. Purpose. The feeling that their work matters and they matter. What it looks like: - Psychological safety - Purpose-driven work - Peer recognition culture Your culture is so strong that recruiters can't poach your people with 30% raises. They've tried. The fix: Train every manager on trust-building. Not a workshop - ongoing coaching. Reward inclusive leadership as much as hitting numbers. Make belonging a metric, not a buzzword. TAKEAWAY: The companies winning the talent war understand that people don't leave companies. They leave cultures that don't value them. They leave managers who don't develop them. They leave futures they can't see. Fix those three things, and retention takes care of itself.

The July JOLTS report from the U.S. Bureau of Labor Statistics shows little change from June: the job market is still in a holding pattern of low turnover with sluggish hiring & quits. 🤝 The hires rate was unchanged at 3.3% in July, holding at levels consistent with the 2013 job market, early in the post-housing bust recovery. Sluggish hiring is a factor in why Americans feel the job market isn't working—it blocks entry for new/returning workers + upward mobility for the employed. 👋 The quits rate tells a similar story to hires. It was unchanged at 2% in July and shows that employed workers still aren't getting the opportunities to hop to a better job that they were just a few years ago during the "Great Resignation" era. Quits and hires have both held largely flat over the last year. ➗ Job openings fell slightly in July to 7,181,000 and the job openings-unemployed worker ratio fell below 1.00 for the first time post-Covid. There's nothing magical about the 1.00 threshold, but for all the attention this ratio got early in Covid, it does emphasize how much softer the job market is now compared to just a few years ago. ❌ Layoffs were largely unchanged in July at 1,808,000, essentially in line with the pre-Covid avg. Layoffs have slowly & unsteadily inched upward over the last few years, though slower hiring appears to be the more widespread factor behind stalling worker progress up the career ladder right now. 🩺 Health care & social assistance job openings dropped sharply to 1,254,000, below their pre-Covid peak. While we should take this data with a grain of salt because of how volatile it is month-to-month, this is especially concerning as the health care industry has been driving the job market—if not for health care & social assistance's job gains, we would have had net job losses each of the last 3 months. #economy #news

Inflation isn’t just an economic challenge—it’s a test of agility for businesses. As costs rise and purchasing power shifts, companies that rely on gut instinct risk falling behind. The real winners? Those who use data-driven insights to navigate uncertainty. 1️⃣ Understanding Consumer Behavior: What’s Changing? Inflation reshapes spending habits. Some consumers trade down to budget-friendly options, while others delay non-essential purchases. Businesses must analyze: 🔹 Spending patterns: Are customers shifting to smaller pack sizes or private labels? 🔹 Channel preferences: Is there a surge in online shopping due to better deals? 🔹 Regional variations: Inflation doesn’t hit all demographics equally—hyperlocal data matters. 📊 Example: A retail chain used real-time sales data to spot a shift toward economy brands, allowing it to adjust promotions and retain price-sensitive customers. 2️⃣ Pricing Trends: Data-Backed Decision-Making Raising prices isn’t the only response to inflation. Smart pricing strategies, backed by AI and analytics, can help businesses optimize margins without losing customers. 🔹 Dynamic pricing models: Adjust prices based on demand, competitor moves, and seasonality. 🔹 Price elasticity analysis: Determine how much a price hike impacts sales before making a move. 🔹 Personalized discounts: Use customer data to offer targeted promotions that drive loyalty. 📈 Example: An e-commerce platform analyzed customer behavior and found that small, frequent discounts led to better retention than infrequent deep discounts. 3️⃣ Demand Forecasting & Inventory Optimization Stocking the right products at the right time is critical in an inflationary market. Predictive analytics can help businesses: 🔹 Anticipate demand surges—especially in essential goods. 🔹 Optimize supply chains to reduce excess inventory and prevent stockouts. 🔹 Reduce waste in perishable categories like F&B, where price-sensitive demand fluctuates. 📦 Example: A leading FMCG brand leveraged AI-driven demand forecasting to prevent overstocking of premium products while ensuring budget-friendly variants were always available. 💡 The Takeaway Inflation isn’t just about rising costs—it’s about shifting consumer priorities. Companies that embrace data-driven decision-making can optimize pricing, fine-tune inventory, and strengthen customer loyalty. 𝑯𝒐𝒘 𝒊𝒔 𝒚𝒐𝒖𝒓 𝒃𝒖𝒔𝒊𝒏𝒆𝒔𝒔 𝒂𝒅𝒂𝒑𝒕𝒊𝒏𝒈 𝒕𝒐 𝒊𝒏𝒇𝒍𝒂𝒕𝒊𝒐𝒏𝒂𝒓𝒚 𝒑𝒓𝒆𝒔𝒔𝒖𝒓𝒆𝒔? 𝑨𝒓𝒆 𝒚𝒐𝒖 𝒖𝒔𝒊𝒏𝒈 𝒅𝒂𝒕𝒂 𝒕𝒐 𝒓𝒆𝒇𝒊𝒏𝒆 𝒚𝒐𝒖𝒓 𝒔𝒕𝒓𝒂𝒕𝒆𝒈𝒚? 𝑳𝒆𝒕’𝒔 𝒅𝒊𝒔𝒄𝒖𝒔𝒔 𝒊𝒏 𝒕𝒉𝒆 𝒄𝒐𝒎𝒎𝒆𝒏𝒕𝒔! #datadrivendecisionmaking #dataanalytics #inflation #inventoryoptimization #demandforecasting #pricingtrends

After 4 years working on construction sites, I left. Because of everything the hours didn't measure. Site work follows you. You never know when a decision will land on your desk as an emergency, or when you'll need to manage conflict with personalities that respect volume more than reason. In construction, strength and loudness count as leadership. If you don't match that energy, you risk being dismissed. If you do, you're exhausting yourself just to be heard. Vacation? Technically possible, practically complicated, and you learn to stop asking. When experienced site professionals move to office roles, we call it career progression, but often, it's just escaping to a place where your value doesn't depend on your ability to handle the noise. In construction, 94% experience stress, 83% anxiety, 60% depression. While the global burnout rate is 25%, in construction this rate is 40–60%. Role stress predicts who leaves. Skilled trades: 73,1% annual turnover; supervisors: 52,4%. Replacement cost €25.000-€35.000, with 12–16 weeks to reach full productivity. Invisible costs are steeper. When experienced workers burn out, organisations lose decades of institutional knowledge. Female workers leave at double the rate of men. They report 73% anxiety or depression compared to 60%. And it's preventable. Let’s talk about it. Source: TheResource - Construction Turnover Rate 2025 https://lnkd.in/eUM6sAdW -- Flora Baranyi | Construction Humanist Rethinking construction culture from the inside. #ConstructionHumanist #FloraOnProcess

The Great Resignation is ending and that's good news for the prospects of a soft landing. Lots to run through from the July 2023 #JOLTS report! After two-plus years spent quitting and finding new and better opportunities at elevated rates, US workers are now voluntarily leaving their jobs at the same rate they were prior to the pandemic. This reduction in job-hopping signals that wage growth will continue to cool as employers face less pressure to attract new hires and retain current employees. This trend, plus the decline in job openings and dormant layoffs, is likely to please Fed policymakers. Quitting is coming down because job seekers are finding fewer opportunities—job openings have declined by 1.5 million over the past three months. There were still 23% more job openings at the end of July than there were on the last business day of January 2020, down from the peak of 67% at the end of March 2022. And while job openings continue to outnumber unemployed workers, the ratio of job openings to unemployed workers declined to 1.5 in July, the lowest ratio since September 2021. The labor market is still tight, but continues to loosen. The pullback in quitting is broad-based, with many sectors currently boasting quits rates equal to or below their immediate pre-pandemic levels. Most notably, quitting in two sectors that led the way during the Great Resignation has returned to early 2020 rates. Quitting in the Retail sector in July was equal to the sector’s February 2020 rate, and Leisure and Hospitality’s rate is slightly below that baseline. If quitting has moderated in these industries that experienced so much churn in recent years, then the Great Resignation is definitely behind us. The reduction in quitting and job openings is happening at the same time as layoffs remain low. The layoff rate remains unchanged over the past year and at a level that would have been an all-time low prior to the pandemic. All three of these trends are necessary ingredients for a soft landing in the US labor market, but that soft landing is still not guaranteed. The US labor market remains on solid footing, but demand for labor needs to continue declining as supply rises to meet it, all as inflation continues to cool.

Annual employee turnover rates are trending steeply downwards from ~20% in 2023 to ~15% in 2025 (annualized) “𝗠𝗮𝗻𝗮𝗴𝗶𝗻𝗴 𝗰𝗼𝗺𝗽𝗲𝗻𝘀𝗮𝘁𝗶𝗼𝗻 𝗶𝗻 𝗮 𝗿𝗲𝗰𝗲𝘀𝘀𝗶𝗼𝗻.” This was the theme of a talk given two weeks ago by David Knopping, Founder of Alpine Rewards and former President of Radford. According to David, four key forces tend to play out across the labor market during contractionary times: 1: Bonus payouts come down 2: More conservatism in merit cycle budgets 3: Equity philosophies change and innovate at a faster pace 𝟰: 𝗘𝗺𝗽𝗹𝗼𝘆𝗲𝗲 𝗮𝘁𝘁𝗿𝗶𝘁𝗶𝗼𝗻–𝗲𝘀𝗽𝗲𝗰𝗶𝗮𝗹𝗹𝘆 𝘃𝗼𝗹𝘂𝗻𝘁𝗮𝗿𝘆–𝘁𝗲𝗻𝗱𝘀 𝘁𝗼 𝗰𝗼𝗺𝗲 𝗱𝗼𝘄𝗻 Today, let’s look at the fourth mentioned force–employee attrition. ________________ 𝗠𝗲𝘁𝗵𝗼𝗱𝗼𝗹𝗼𝗴𝘆: Pave’s data science team performed an employee turnover analysis across 2,708 customers who have been in Pave’s dataset since the beginning of 2023. Note that the employee turnover benchmarks include both voluntary and involuntary attrition. Also note that the 2025 stats are annualized after one quarter’s worth of data. ______________ 𝗥𝗲𝘀𝘂𝗹𝘁𝘀: 📉100-1,001 Employees: 22.4% in '23 to 20.1% in '25  📉1001-3000 Employees: 20.3% in '23 to 15.3% in '25  📉3001+ Employees: 20.8% in '23 to 14.7% in '25 ______________ 𝗧𝗮𝗸𝗲𝗮𝘄𝗮𝘆𝘀: 1️⃣ 𝗘𝗺𝗽𝗹𝗼𝘆𝗲𝗲 𝗮𝘁𝘁𝗿𝗶𝘁𝗶𝗼𝗻 𝗶𝘀 𝗱𝗼𝘄𝗻 𝗮𝗰𝗿𝗼𝘀𝘀 𝘁𝗵𝗲 𝗯𝗼𝗮𝗿𝗱. We unfortunately don’t have a reliable way to break down voluntary vs. involuntary attrition at scale. But across the board, employee turnover rates are lower than they’ve been in years. Here are two hypotheses across involuntary and voluntary. [A] Involuntary attrition: many companies went through a wave of “post ZIRP right-sizing layoffs”, but that wave has mostly cooled off. [B] Voluntary attrition: employees are coming to terms with that fact that it is NOT a hot job market, at least in tech. Companies are generally prioritizing efficiency more so than in the past (e.g. ARR/FTE, Burn Multiple, Free Cash Flow, SBC as a % of Revenue, etc). 2️⃣ 𝗧𝗵𝗲 𝗿𝗲𝗹𝗮𝘁𝗶𝘃𝗲 𝗱𝗿𝗼𝗽 𝗶𝗻 𝗲𝗺𝗽𝗹𝗼𝘆𝗲𝗲 𝗮𝘁𝘁𝗿𝗶𝘁𝗶𝗼𝗻 𝗶𝘀 𝗺𝗼𝘀𝘁 𝗽𝗿𝗼𝗻𝗼𝘂𝗻𝗰𝗲𝗱 𝗮𝘁 𝗹𝗮𝗿𝗴𝗲𝗿 𝗰𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀. Smaller companies are a touch down (22.4% in 2023 vs. 20.1% in 2025_annualized). Meanwhile, the drop for companies with 3,000+ employees is much larger (20.8% in 2023 vs 14.7% in 2025_annualized). Perhaps employees at larger, often public, companies are content with “the devil you know vs the devil you don’t know”? ______________ 𝗣𝗿𝗮𝗰𝘁𝗶𝗰𝗮𝗹 𝗦𝘂𝗴𝗴𝗲𝘀𝘁𝗶𝗼𝗻 𝗳𝗼𝗿 𝗖𝗼𝗺𝗽𝗲𝗻𝘀𝗮𝘁𝗶𝗼𝗻 & 𝗛𝗥 𝗟𝗲𝗮𝗱𝗲𝗿𝘀: What is your company’s 2024 employee turnover rate? What was your company’s Q1 2025 employee turnover rate? And how do these two numbers compare to the relevant benchmarks in this study? Use this to gain an understanding of how your company compares to the market and what (if any) changes you should make to your company's total rewards program design.

𝗣𝗲𝗼𝗽𝗹𝗲 𝗗𝗼𝗻’𝘁 𝗤𝘂𝗶𝘁 𝗕𝗼𝘀𝘀𝗲𝘀 — 𝗧𝗵𝗲𝘆 𝗤𝘂𝗶𝘁 𝘁𝗵𝗲 𝗚𝗮𝗽 𝗕𝗲𝘁𝘄𝗲𝗲𝗻 𝗪𝗵𝗲𝗿𝗲 𝗧𝗵𝗲𝘆 𝗔𝗿𝗲 𝗮𝗻𝗱 𝗪𝗵𝗲𝗿𝗲 𝗧𝗵𝗲𝘆 𝗪𝗮𝗻𝘁 𝘁𝗼 𝗕𝗲. For years, we’ve accepted the idea that “𝗘𝗺𝗽𝗹𝗼𝘆𝗲𝗲𝘀 𝗱𝗼𝗻’𝘁 𝗾𝘂𝗶𝘁 𝗼𝗿𝗴𝗮𝗻𝗶𝘀𝗮𝘁𝗶𝗼𝗻𝘀 — 𝘁𝗵𝗲𝘆 𝗾𝘂𝗶𝘁 𝗺𝗮𝗻𝗮𝗴𝗲𝗿𝘀.” It’s a comforting line. It feels obvious. But new research shows it’s only half the story — and sometimes a dangerously incomplete one. A study using an 𝗮𝗽𝗽𝗿𝗼𝗮𝗰𝗵–𝗮𝘃𝗼𝗶𝗱𝗮𝗻𝗰𝗲 lens reveals something far more nuanced: 👉 Some employees leave to escape something (bad managers, burnout, toxicity). 👉 Others leave to pursue something (growth, meaning, flexibility, better alignment). 👉 And most? They leave because of both forces at the same time. This means turnover isn’t a single-story problem. It’s a 𝗱𝘂𝗮𝗹-𝗺𝗼𝘁𝗶𝘃𝗮𝘁𝗶𝗼𝗻 𝗱𝗲𝗰𝗶𝘀𝗶𝗼𝗻. 𝗔𝘃𝗼𝗶𝗱𝗮𝗻𝗰𝗲 𝗿𝗲𝗮𝘀𝗼𝗻𝘀 (𝗺𝗼𝘃𝗶𝗻𝗴 𝗔𝗪𝗔𝗬 𝗳𝗿𝗼𝗺 𝘀𝗼𝗺𝗲𝘁𝗵𝗶𝗻𝗴): • Poor manager behaviour • Lack of recognition • Toxic or political culture • Stress, overload, unclear roles • No psychological safety Yes — these matter. A lot. But they don’t explain the full picture. 𝗔𝗽𝗽𝗿𝗼𝗮𝗰𝗵 𝗿𝗲𝗮𝘀𝗼𝗻𝘀 (𝗺𝗼𝘃𝗶𝗻𝗴 𝗧𝗢𝗪𝗔𝗥𝗗 𝘀𝗼𝗺𝗲𝘁𝗵𝗶𝗻𝗴): • Career growth • Skill development • Better pay or opportunities • More meaningful work • Flexibility and autonomy • Stronger culture fit elsewhere These are rarely about “bad bosses.” They’re about better futures. 𝗧𝗵𝗲 𝗿𝗲𝗮𝗹 𝗶𝗻𝘀𝗶𝗴𝗵𝘁: People don’t quit only because of pain. They quit because of comparison — the difference between what they have and what they believe they could have. Turnover is the result of: 𝗔𝘃𝗼𝗶𝗱𝗮𝗻𝗰𝗲: “𝗜 𝗰𝗮𝗻’𝘁 𝗸𝗲𝗲𝗽 𝗱𝗼𝗶𝗻𝗴 𝘁𝗵𝗶𝘀.” + 𝗔𝗽𝗽𝗿𝗼𝗮𝗰𝗵: “𝗜 𝗱𝗲𝘀𝗲𝗿𝘃𝗲 𝘀𝗼𝗺𝗲𝘁𝗵𝗶𝗻𝗴 𝗯𝗲𝘁𝘁𝗲𝗿.” When companies overly focus on fixing the managers, they miss the bigger levers — job design, growth pathways, culture alignment, workload balance, and real opportunities for mobility. Retention isn’t a manager-only issue. It’s a system issue. 𝗙𝗼𝗿 𝗲𝗺𝗽𝗹𝗼𝘆𝗲𝗿𝘀: The most revealing question is NOT - “Why are people leaving?” It is, “What are they escaping — and what are they moving toward?” That’s where the real answers hide. And where the real retention strategies begin.

CEO: People keep leaving. CFO: Do we know why? HR: Yep. 70% walk out the door because their basic needs aren’t being met—things like growth, recognition, and flexibility. CEO: How much is this really costing us? HR: Around 1.5 times their salary per person—plus a big hit to productivity while we scramble to replace them. CEO: We need to cut costs. Can we really afford engagement programs right now? CFO: Hold on—what’s the ROI on those programs? HR: The ones focused on growth and recognition cut turnover by 25%. That’s saved us $3 million this year alone. CEO: Are there any other upsides to meeting employee needs? HR: Plenty. Valued employees are 30% more productive and far more satisfied at work. CFO: And yes, profitability is up. Engaged teams drive 21% more profit. This isn’t fluff. It’s strategy. CEO: So if we pull the plug on these programs, we could end up bleeding more? CFO: Exactly. The numbers speak for themselves. HR: Let’s be clear—meeting employee needs isn’t a luxury. It’s a leadership decision. It’s how we retain talent, boost performance, and drive results. Bottom line: People don’t leave jobs. They leave unmet needs. Want to stop the bleeding? Invest in your people.

When I first stepped into HR, the number everyone kept talking about in review meetings was: Attrition. “How many people left this quarter?” “Which department saw the highest exits?” “What’s our turnover rate compared to the industry?” For years, attrition became the north star metric not because it was the goal we wanted to achieve, but because it was the easiest number to track. Leadership often judged whether things were “going well enough” based on exits, without asking the harder questions behind them. Here’s the problem: attrition is a lagging indicator. It tells you who already left. It doesn’t tell you who might leave next. That’s where most companies miss the point. If you want to build teams that are ready for the future, the focus needs to shift from: ❌ “Who walked out?” ✅ “Who’s still here, and can see a future with us?” Think about it: when employees stay by choice, they don’t just fill a seat. They bring experience, mentor others, fuel innovation, and carry culture forward. High attrition doesn’t just cost money it erodes trust, slows execution, and leaves leadership constantly playing catch-up. Of course, not every exit is bad. Healthy turnover brings fresh skills and perspectives. But when good people leave for avoidable reasons, that’s a sign the system needs a rethink. Here’s how leaders can shift the focus from just tracking exits to creating workplaces where employees want to stay: ✅Build listening systems – Regular pulse checks, stay interviews, and feedback loops that go beyond surveys. 👉 When was the last time your organization actually asked employees why they stay or think about leaving? ✅Design growth pathways – Transparent internal mobility frameworks so people can see their next role inside the company, not outside. ✅Integrate wellness with work – Mental, physical, and financial well-being should be part of how work is done, not just perks. ✅Strengthen manager capability – Equip leaders to have meaningful conversations about purpose, performance, and growth. When leaders focus on career growth and capability-building, employees stay by choice, not by policy. They stay because they feel valued, not because they’re bound. And that changes everything. #EmployeeEngagement #InternalMobility #HRLeadership #FutureOfWork

£300,000 revenue. £60,000 profit. Sounds decent, right? That’s exactly what the headline P&L showed. Revenue: £300k Net Profit: £60k 20% margin. Most owners would take that and move on. But we split revenue streams from the start. Paid Ads. Web Builds. Consulting. Revenue. Direct team costs. Subcontractors. Overhead allocation. When we broke it down properly: Paid Ads → £55k profit Consulting → £25k profit Web Builds → £20k loss Total? Still £60,000. That’s the trap. The business looks healthy overall. But one service is: • Underpriced • Over-serviced • Soaking up team time • Quietly losing money And the profitable services are covering for it. At £300k turnover, that £20k loss is massive. That’s salary. That’s marketing budget. That’s buffer. Loss-making services don’t feel like losses. They feel busy. They feel productive. They make you think you’re growing. Until margins tighten and cashflow gets uncomfortable. This is why we split revenue streams from day one. Not when you’re “bigger.” Not when it gets complicated. From the start. Because one headline profit number tells you nothing about what’s actually working.