White Papers

How Performance Level and Ratings Could Help Predict Voluntary Turnover

The Great Resignation of 2021 is not over. Recent labor trends suggest that in 2023, one out of five employees will resign within the first year. What if we could predict which employees were going to quit and why? Numerous factors influence voluntary employee turnover, and the reasons why are constantly changing. Two factors that can heavily influence voluntary turnover are performance level and performance ratings.

Performance Level
Performance level is measured by how well an employee is performing in their assigned role. In the case of voluntary turnover, poor-performing employees are the most likely to leave. Some common reasons for poor performance include a lack of skills, experience, or knowledge of the position they are expected to perform. Employees also quit due to a lack of job “fit” – meaning they may become frustrated by job demands or contextual elements. This is considered functional turnover, and trying to re-train and motivate this group can be more costly than the eventual turnover itself. If you have a poor performer considering leaving, let them go.

The second group that is most likely to leave is the highest-performing employees. One of the top reasons high performers leave is because they feel undervalued or underappreciated. This group is the most costly to lose and the most beneficial to keep.

Performance Ratings
Performance ratings are dynamic in that they are constantly changing for better or worse as an employee’s performance changes. Negative performance ratings will have a greater impact on turnover than positive performance ratings. 

When these ratings go down for employees, they are more likely to turnover and leave an organization. Once again, poor performers are more likely than high performers to turnover after a downward change in performance. Meanwhile, high performers are less likely to be affected by short-term changes in performance whether the ratings have decreased or increased from previous ratings.

 How do I reduce voluntary turnover?
First, who do you want to keep? High performers should be your target for obvious reasons. Consider trying to better understand and address any “fit” related triggers for employees. Can you adjust their work environment or job demands to eliminate or reduce those potential derailers? Merit or performance-based pay may lessen the effects of voluntary turnover concerning performance level and performance ratings. High performers are less likely to turnover when they are paid based on performance. However, this strategy does not affect low performers; performance-based pay does not influence the turnover rate in low-performing employees.

Recent labor research has shown that candidates are looking for more money, better benefits, an improved work/life balance, more opportunities to progress in their careers, time to address personal issues like health problems or relocations, and increased flexibility. Employees in 2023 are expecting to feel valued. Without the right compensation for these employees, an organization will risk losing its most valuable assets.



DeGarmo updates the Interview Builder – Are your hiring managers asking the right questions?

What is the Interview Builder?
The Interview Builder allows clients to create custom interview guides to their specifications, conveniently stores these guides in their private interview library, and enables clients to share their data with necessary colleagues.

DeGarmo’s interview builder comes standard with access to more than 120 dimensions across job competencies, work styles, and cultural elements. Users have access to nearly 2,500 interview questions created for entry-level through senior leader roles by our team of in-house I/O psychologists.

Learn more about this dynamic platform that can help your organization reach your most challenging business goals!


Or contact Chad Carlile for more information and a free demo today!



SHRM Annual Conference & Expo 2022

SHRM Annual Conference & Expo 2022

Cause The Effect you want to have on the world of work and on your career. Join us at SHRM22 for the largest gathering of HR professionals on Earth in one of the most vibrant cities in America: New Orleans, LA. The event will include four days of peer-to-peer networking, inspiring addresses from top business and HR leaders, competency-based HR seminars, hands-on workshops, plus curated content focused on some of the most pressing issues facing HR: DE&I, workplace culture, talent acquisition and retention, and more.


June 12 – 15, 2022


New Orleans, LA



14_Amanda Zouroudis_HR Manager_Kalorik

Using DeGarmo has enabled us to hire smarter, meaning we save money and retain employees. It truly gives you a brief look into the employee’s work style, especially if their work style fits with the team members and the position.


13_Robin Martin_HR & AP Officer_New Market Bank

DeGarmo was great at getting us set up on their system. Their training platform is efficient and easy to follow, and the customer service was excellent!


12_Anna Hayter_Director of Human Resources_Wallowa Memorial Hospital

With DeGarmo’s help… Our turnover dropped dramatically. We are now at 7.6% voluntary attrition. I can’t say enough good about their team and the services they offer.


11_Debra Swift_HR Director_Zoom Management, LLC

We have found candidates that are better suited to our business and we have seen our new hires performing better and staying longer in their roles. They are a terrific group, and we are glad to be partnered with them!


2022 Annual SIOP Conference

2022 SIOP Annual Conference

April 27 – 30, 2022  |  Seattle, Washington

Washington State Convention Center

(Soon-to-be renamed the Seattle Convention Center)
 Visit for more information

Case Studies (In Metrics Page)

29_National Department Store Retailer Saves $500,000_Confidential Client



Case Studies (In Metrics Page)

28_Assessment Platform Reduces Turnover, Saves Thousands_CPAS



Case Studies (In Metrics Page)

27_Assessment Platform Greatly Reduces Turnover_APAC



Case Studies (In Metrics Page)

26_Interview Builder Improves Quality and Consistency_Austal