{"id":41542,"date":"2021-03-25T16:06:58","date_gmt":"2021-03-25T14:06:58","guid":{"rendered":"https:\/\/factorialhr.com\/blog\/?p=41542"},"modified":"2023-10-17T15:06:37","modified_gmt":"2023-10-17T13:06:37","slug":"involuntary-termination","status":"publish","type":"post","link":"https:\/\/factorialhr.com\/blog\/involuntary-termination\/","title":{"rendered":"Key HR Metrics: How to Learn from Your Involuntary Termination Rate"},"content":{"rendered":"<p><em>Turnover is one of the key HR metrics. Leverage the data about involuntary termination rate to help identify areas for growth.<\/em><\/p>\n<p>Nothing lasts forever. At some point or another, an employee will leave the company for good.<\/p>\n<p>However, the hows and whys of the termination of employment can vary widely.<\/p>\n<p>In most cases, a member of staff will leave the post of their own volition. This could happen because they\u2019re relocating to another part of the country, retiring, or they\u2019re simply pursuing a new challenge at a different company.<\/p>\n<p>Resigning from a post is called <strong>voluntary termination<\/strong>. But there\u2019s also <strong>involuntary termination<\/strong>, which is essentially a technical term for saying the employee was forced out of the company. The involuntary termination rate is one of the <strong>key metrics<\/strong> your HR department should be taking into consideration.<\/p>\n<p>A high rate can reveal <strong>problems with your business&#8217;s hiring and onboarding practices<\/strong>. It can also show issues with your company culture or managerial practices.<\/p>\n<p>In this blog, we\u2019ll run through the ins and outs of this second type of termination. We\u2019ll look at what involuntary termination looks like, how to reduce it, and how to offboard the terminated employee.<\/p>\n<ul>\n<li><a href=\"#whatis\">\u00a0What is involuntary termination?<\/a><\/li>\n<li><a href=\"#calculate\">\u00a0How to calculate the turnover rate<\/a><\/li>\n<li><a href=\"#reduce\">\u00a0How to reduce your involuntary termination rate<\/a><\/li>\n<li><a href=\"#offboarding\">\u00a0Offboarding Best Practices<\/a><\/li>\n<\/ul>\n<p><!--HubSpot Call-to-Action Code --><span id=\"hs-cta-wrapper-5226cc3d-f5c3-413c-84db-d9858ff11f1e\" class=\"hs-cta-wrapper\"><span id=\"hs-cta-5226cc3d-f5c3-413c-84db-d9858ff11f1e\" class=\"hs-cta-node hs-cta-5226cc3d-f5c3-413c-84db-d9858ff11f1e\"><!-- [if lte IE 8]>\n\n\n<div id=\"hs-cta-ie-element\"><\/div>\n\n\n<![endif]--><a href=\"https:\/\/cta-redirect.hubspot.com\/cta\/redirect\/4960096\/5226cc3d-f5c3-413c-84db-d9858ff11f1e\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" id=\"hs-cta-img-5226cc3d-f5c3-413c-84db-d9858ff11f1e\" class=\"hs-cta-img aligncenter\" style=\"border-width: 0px;\" src=\"https:\/\/no-cache.hubspot.com\/cta\/default\/4960096\/5226cc3d-f5c3-413c-84db-d9858ff11f1e.png\" alt=\"kpi-template-red\" width=\"900\" height=\"309\" \/><\/a><\/span><script charset=\"utf-8\" src=\"https:\/\/js.hscta.net\/cta\/current.js\"><\/script><script type=\"text\/javascript\"> hbspt.cta.load(4960096, '5226cc3d-f5c3-413c-84db-d9858ff11f1e', {\"region\":\"na1\"}); <\/script><\/span><!-- end HubSpot Call-to-Action Code --><\/p>\n<h2><a name=\"whatis\"><\/a>What is Involuntary Termination?<\/h2>\n<p>Involuntary termination is when a company removes an employee from their post and thus ends the employment relationship. This can happen due to poor performance, unprofessional behavior, or a strategic shift within the company. It differs from voluntary termination and mutual termination in that the employee has no say in the decision.<\/p>\n<p>There are two types of involuntary termination \u2014 with cause and without cause.<\/p>\n<h3><em><strong>With Cause<\/strong><\/em><\/h3>\n<p>\u201cWith Cause\u201d termination is when a company fires an employee for a reason. These reasons include poor performance, a violation of company policy, repeated lateness, or violence\/aggressive behavior in the workplace.<\/p>\n<p>In most cases, the company will have warned the employee that they face dismissal if they do not change their performance\/behavior.<\/p>\n<p>In many instances, businesses may have offered a performance improvement plan to struggling employees.<\/p>\n<p>However, there are instances when a company will fire an employee without prior warning.<\/p>\n<p>For example, if an employee threatens others in the workplace or otherwise grossly violates company policy.<\/p>\n<h3><em><strong>Without Cause<\/strong><\/em><\/h3>\n<p>Involuntary termination doesn\u2019t always mean that the employee has done something wrong.<\/p>\n<p>In some cases, a company will remove an employee from their post through no fault of the employee. This is \u201cwithout cause.\u201d<\/p>\n<p>For instance, if a company runs into financial difficulties or downsizes and has to lay-off staff. This type of termination relates to a company\u2019s business objectives or wider economic conditions.<\/p>\n<h2><a name=\"calculate\"><\/a><strong>How to calculate the turnover rate<\/strong><\/h2>\n<p>Involuntary termination is more than an incidental employment factor. It\u2019s in the company\u2019s best interests to keep the turnover rate low, both for voluntary and involuntary termination.<\/p>\n<p>As such, HR should <a href=\"https:\/\/factorialhr.com\/blog\/causes-high-turnover-rate\/\" target=\"_blank\" rel=\"noopener\">measure the employee turnover rate<\/a> as a <a href=\"https:\/\/factorialhr.com\/blog\/hr-kpis\/\" target=\"_blank\" rel=\"noopener\">key performance indicator (KPI)<\/a>.<\/p>\n<p>If it\u2019s too high, there could be an issue with <strong>employee engagement, management performance, or the broader company culture<\/strong>. A <a href=\"https:\/\/factorialhr.com\/blog\/attrition-rate\/\" target=\"_blank\" rel=\"noopener\">high employee attrition rate<\/a> can result in lost productivity and increased employee costs.<\/p>\n<p>There are ways to improve the involuntary termination rate, but first, HR needs to know the rate. So how do you do that?<\/p>\n<p>It\u2019s a simple enough formula, providing you have the data you need (and a calculator).<\/p>\n<p>You\u2019ll need to know how many involuntary terminations occurred within a set period (of your choosing: the past month, six months, or year are most common). You can find this number by going through the termination documents in <a href=\"https:\/\/factorialhr.com\/document-management\">your company\u2019s document management software<\/a>.<\/p>\n<p>You\u2019ll also need to know the average number of employees within the same time frame (past month, six months, year). Do this by adding the number of employees at the beginning of the period to the number of employees at the end of the period, then divide by two.<br \/>\n<!--HubSpot Call-to-Action Code --><span id=\"hs-cta-wrapper-db9b86f7-a79b-417e-957a-1ab1b9c5e360\" class=\"hs-cta-wrapper\"><span id=\"hs-cta-db9b86f7-a79b-417e-957a-1ab1b9c5e360\" class=\"hs-cta-node hs-cta-db9b86f7-a79b-417e-957a-1ab1b9c5e360\"><!-- [if lte IE 8]>\n\n\n<div id=\"hs-cta-ie-element\"><\/div>\n\n\n<![endif]--><a href=\"https:\/\/cta-redirect.hubspot.com\/cta\/redirect\/4960096\/db9b86f7-a79b-417e-957a-1ab1b9c5e360\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" id=\"hs-cta-img-db9b86f7-a79b-417e-957a-1ab1b9c5e360\" class=\"hs-cta-img aligncenter\" style=\"border-width: 0px;\" src=\"https:\/\/no-cache.hubspot.com\/cta\/default\/4960096\/db9b86f7-a79b-417e-957a-1ab1b9c5e360.png\" alt=\"New call-to-action\" width=\"900\" height=\"308\" \/><\/a><\/span><script charset=\"utf-8\" src=\"https:\/\/js.hscta.net\/cta\/current.js\"><\/script><script type=\"text\/javascript\"> hbspt.cta.load(4960096, 'db9b86f7-a79b-417e-957a-1ab1b9c5e360', {\"region\":\"na1\"}); <\/script><\/span><!-- end HubSpot Call-to-Action Code --><\/p>\n<h3><strong>For example:<\/strong><\/h3>\n<p><center><strong>On January 1, the company had 123 employees.<\/strong><\/center><center><strong>\u00a0On July 1, the company had 128 employees.<\/strong><\/center><center><strong>123 + 129 = 252.<\/strong><\/center><center><strong>252 \/ 2 = 126.<\/strong><\/center>There were 126 average employees during the timeframe.<\/p>\n<p>The formula for calculating the turnover rate is as follows:<\/p>\n<p><center><strong>Number of employees involuntarily terminated<\/strong><\/center><center><em>Divided by<\/em><\/center><center><strong>The average number of employees m<\/strong><strong>ultiplied by <\/strong><strong>100<\/strong><\/center><center><em>Equals<\/em><\/center><center><strong>Involuntary termination employee turnover rate<\/strong><\/center>Or to put it more clearly:<\/p>\n<p><center><strong>8 (involuntary terminations)<\/strong><\/center><center><em>Divided by<\/em><\/center><center><strong>126 (average employees)<\/strong><\/center><center><em>Equals<\/em><\/center><center><strong>0.63<\/strong><\/center><center><strong>0.63 x 100 = 6.3.<\/strong><\/center>Thus, the employee turnover rate for involuntary terminations is 6.3%.<\/p>\n<p>To learn the turnover rate for all employees, simply include all staff members that left (voluntary and involuntary).<\/p>\n<h2><a name=\"reduce\"><\/a>How to Reduce Involuntary Termination Rate<\/h2>\n<p>There\u2019ll be times when a company has no other choice than to let an employee go.<\/p>\n<p>However, if a company has a higher-than-average involuntary termination rate, it\u2019s important to take action. Firing and hiring employees can be highly capital-intensive and result in lost productivity and decreased workplace morale, among other consequences<\/p>\n<p>So let\u2019s take a look at some helpful tips that\u2019ll keep the turnover percentage to a minimum. Note that these tips only refer to \u201cwith cause\u201d terminations, not \u201cwithout cause\u201d terminations (since those are strategic).<\/p>\n<h3><em><strong>Hire Correctly<\/strong><\/em><\/h3>\n<p>An employee will be more likely to be fired if they were <strong>never a good fit in the first place<\/strong>. This isn\u2019t just about their professional capacity to do their task well, though that is important. They should also be in sync with the company\u2019s broader company culture. If they\u2019re not, it\u2019s more likely that problems will arise.<\/p>\n<p>Reference checking during the hiring process can also highlight any potential causes for concern.<br \/>\n<!--HubSpot Call-to-Action Code --><span id=\"hs-cta-wrapper-5226cc3d-f5c3-413c-84db-d9858ff11f1e\" class=\"hs-cta-wrapper\"><span id=\"hs-cta-5226cc3d-f5c3-413c-84db-d9858ff11f1e\" class=\"hs-cta-node hs-cta-5226cc3d-f5c3-413c-84db-d9858ff11f1e\"><!-- [if lte IE 8]>\n\n\n<div id=\"hs-cta-ie-element\"><\/div>\n\n\n<![endif]--><a href=\"https:\/\/cta-redirect.hubspot.com\/cta\/redirect\/4960096\/5226cc3d-f5c3-413c-84db-d9858ff11f1e\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" id=\"hs-cta-img-5226cc3d-f5c3-413c-84db-d9858ff11f1e\" class=\"hs-cta-img aligncenter\" style=\"border-width: 0px;\" src=\"https:\/\/no-cache.hubspot.com\/cta\/default\/4960096\/5226cc3d-f5c3-413c-84db-d9858ff11f1e.png\" alt=\"kpi-template-red\" width=\"900\" height=\"309\" \/><\/a><\/span><script charset=\"utf-8\" src=\"https:\/\/js.hscta.net\/cta\/current.js\"><\/script><script type=\"text\/javascript\"> hbspt.cta.load(4960096, '5226cc3d-f5c3-413c-84db-d9858ff11f1e', {\"region\":\"na1\"}); <\/script><\/span><!-- end HubSpot Call-to-Action Code --><\/p>\n<h3><em><strong>Successful Onboarding<\/strong><\/em><\/h3>\n<p>Start as you mean to go on, is what they say.<\/p>\n<p>If a recruit gets off on the right foot, then they\u2019ll be more likely to succeed in the role.<\/p>\n<p>In the case they don\u2019t, then there\u2019ll be a mountain to climb. And mountains are hard to climb.<\/p>\n<p>A <a href=\"https:\/\/factorialhr.com\/employee-onboarding-and-offboarding\" target=\"_blank\" rel=\"noopener\">successful onboarding process<\/a> will make the employee feel welcome and ensure they can <strong>hit the ground running<\/strong>.<\/p>\n<h3><em><strong>Ongoing Training<\/strong><\/em><\/h3>\n<p>Think of hiring the right recruit as <strong>planting a seed<\/strong>. The training you provide is the water that nourishes that seed.<\/p>\n<p>An unwatered seed will go nowhere. An employee will be more likely to perform well if they\u2019ve got the tools and guidance to deliver their best work.<\/p>\n<p><a href=\"https:\/\/www.gartner.com\/en\/human-resources\/insights\/skills-gap\" target=\"_blank\" rel=\"noopener\">70% of employees<\/a> feel they haven&#8217;t mastered the skills they need for their positions.<\/p>\n<p>Help employees to feel that they&#8217;re learning in their position, and they&#8217;ll be better able to contribute to the workplace.<\/p>\n<h3><em><strong>Clear Expectations<\/strong><\/em><\/h3>\n<p>It\u2019s unreasonable to think an employee will follow a company\u2019s guidelines if they don\u2019t know what they are.<\/p>\n<p>Your company policy functions to outline appropriate, inappropriate, and unacceptable behavior. This policy should be <a href=\"https:\/\/factorialhr.com\/employee-portal\" target=\"_blank\" rel=\"noopener\">readily accessible to employees within their employee portal<\/a>.<\/p>\n<p>HR should communicate professional expectations on an individual employee basis via performance appraisals and the <a href=\"https:\/\/factorialhr.com\/blog\/development-plan-for-employees\/\" target=\"_blank\" rel=\"noopener\">employee\u2019s development plan<\/a>.<\/p>\n<h2><a name=\"offboarding\"><\/a>Offboarding Best Practices<\/h2>\n<p>It\u2019s a good idea to offboard all employees that leave the company. But it\u2019s extra important when an employee is removed from their post since there\u2019s a greater chance of legal blowbacks.<\/p>\n<p>You\u2019ll likely already have your own offboarding process at your business. If you don\u2019t, then <a href=\"https:\/\/factorialhr.com\/blog\/download-offboarding-checklist\/\" target=\"_blank\" rel=\"noopener\">download our free offboarding checklist<\/a>.<\/p>\n<p>When dealing with an involuntarily terminated employee, some aspects of offboarding become more critical.<\/p>\n<p>For instance, HR should ensure they have all documentation related to the terminated employee readily available in a document management platform. Revoking access to the company\u2019s platforms and databases is also key.<\/p>\n<p>Finally, unless the reason for the dismissal is serious, a farewell is appropriate. This relationship may not have worked out, but what\u2019s done is done. Bid each other well, and move on.<br \/>\n<!--HubSpot Call-to-Action Code --><span id=\"hs-cta-wrapper-db9b86f7-a79b-417e-957a-1ab1b9c5e360\" class=\"hs-cta-wrapper\"><span id=\"hs-cta-db9b86f7-a79b-417e-957a-1ab1b9c5e360\" class=\"hs-cta-node hs-cta-db9b86f7-a79b-417e-957a-1ab1b9c5e360\"><!-- [if lte IE 8]>\n\n\n<div id=\"hs-cta-ie-element\"><\/div>\n\n\n<![endif]--><a href=\"https:\/\/cta-redirect.hubspot.com\/cta\/redirect\/4960096\/db9b86f7-a79b-417e-957a-1ab1b9c5e360\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" id=\"hs-cta-img-db9b86f7-a79b-417e-957a-1ab1b9c5e360\" class=\"hs-cta-img aligncenter\" style=\"border-width: 0px;\" src=\"https:\/\/no-cache.hubspot.com\/cta\/default\/4960096\/db9b86f7-a79b-417e-957a-1ab1b9c5e360.png\" alt=\"New call-to-action\" width=\"900\" height=\"308\" \/><\/a><\/span><script charset=\"utf-8\" src=\"https:\/\/js.hscta.net\/cta\/current.js\"><\/script><script type=\"text\/javascript\"> hbspt.cta.load(4960096, 'db9b86f7-a79b-417e-957a-1ab1b9c5e360', {\"region\":\"na1\"}); <\/script><\/span><!-- end HubSpot Call-to-Action Code --><\/p>\n<h2>Conclusion<\/h2>\n<p>Involuntary termination isn\u2019t the most rewarding aspect of HR. It can be unpleasant at the best of times, outright ugly at the worst of times. Still, it\u2019s an unavoidable part of running a business.<\/p>\n<p>While HR teams can\u2019t prevent it entirely, they can use it as <strong>a learning opportunity<\/strong>.<\/p>\n<p>By diving deep into the data, HR can improve the hiring process, identify employee engagement issues, and ultimately learn from past mistakes.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Turnover is one of the key HR metrics. Leverage the data about involuntary termination rate to help identify areas for growth. Nothing lasts forever. At some point or another, an employee will leave the company for good. However, the hows and whys of the termination of employment can vary widely. In most cases, a member<a href=\"https:\/\/factorialhr.com\/blog\/involuntary-termination\/\" class=\"read-more\"> [&#8230;]<\/a><\/p>\n","protected":false},"author":136,"featured_media":47512,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-41542","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-human-resources"],"acf":{"topics":"talent-onboarding"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.5 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Lessons from Your Involuntary Termination Rate - Factorial<\/title>\n<meta name=\"description\" content=\"Turnover is one of the key HR metrics. 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