Employee Turnover Rate Calculator
Understanding Employee Turnover Rate
Employee turnover rate is a crucial metric for any organization, measuring the percentage of employees who leave a company within a specific period. A high turnover rate can signal underlying issues within the workplace, such as poor management, lack of growth opportunities, inadequate compensation, or a toxic work environment. Conversely, a low turnover rate generally indicates a healthy company culture and high employee satisfaction.
Calculating employee turnover rate helps businesses identify trends, understand the financial impact of losing and replacing staff (recruitment costs, training, lost productivity), and implement strategies to improve employee retention. By tracking this metric over time, organizations can assess the effectiveness of their HR initiatives and make data-driven decisions to foster a more stable and engaged workforce.
How to Calculate
The formula for employee turnover rate is:
Turnover Rate = (Number of Employees Who Left During Period / Average Number of Employees During Period) * 100
The average number of employees is typically calculated by adding the number of employees at the start of the period to the number of employees at the end of the period, and then dividing by two.
Average Employees = (Employees at Start + Employees at End) / 2
For example, if a company starts with 100 employees, ends with 110 employees, and 5 employees left during the period, the calculation would be:
Average Employees = (100 + 110) / 2 = 105
Turnover Rate = (5 / 105) * 100 ≈ 4.76%
This calculator simplifies that process for you. Simply input the relevant numbers, and it will provide your employee turnover rate.