How Do You Calculate Employee Turnover Rate

Employee Turnover Rate Calculator

Understanding Employee Turnover Rate

Employee turnover rate is a key metric for businesses to understand the rate at which employees leave an organization over a specific period. A high turnover rate can be costly, impacting productivity, morale, and the expense associated with recruiting and training new staff. Conversely, a very low turnover rate might sometimes indicate a lack of new talent entering the company or a stagnation in growth.

Calculating employee turnover rate helps businesses identify potential issues within their organizational culture, management practices, compensation, or employee development strategies. By monitoring this rate, companies can make informed decisions to improve employee retention and foster a more stable and engaged workforce.

How to Calculate Employee Turnover Rate:

The standard formula for calculating employee turnover rate is as follows:

Employee Turnover Rate = (Number of Employees Who Left During Period / Average Number of Employees During Period) * 100

To find the "Average Number of Employees During Period", you typically sum the number of employees at the start of the period and the number of employees at the end of the period, then divide by two.

Average Number of Employees = (Employees at Start of Period + Employees at End of Period) / 2

In this calculator, we use the provided number of employees who left directly, assuming it's the total for the period. If you only have the start and end numbers, you would need to deduce the number who left (Start – End = Left). However, for a more accurate calculation, especially if there were hires during the period that balanced out leavers, providing the exact number of leavers is crucial. This calculator uses the direct 'Number of Employees Who Left During Period' for precision.

function calculateTurnoverRate() { var employeesAtStart = parseFloat(document.getElementById("employeesAtStart").value); var employeesAtEnd = parseFloat(document.getElementById("employeesAtEnd").value); var employeesWhoLeft = parseFloat(document.getElementById("employeesWhoLeft").value); var turnoverRateElement = document.getElementById("turnoverRate"); if (isNaN(employeesAtStart) || isNaN(employeesAtEnd) || isNaN(employeesWhoLeft) || employeesAtStart < 0 || employeesAtEnd < 0 || employeesWhoLeft < 0) { turnoverRateElement.innerHTML = "Invalid input. Please enter positive numbers."; return; } var averageEmployees = (employeesAtStart + employeesAtEnd) / 2; if (averageEmployees <= 0) { turnoverRateElement.innerHTML = "Average employees cannot be zero or negative."; return; } var turnoverRate = (employeesWhoLeft / averageEmployees) * 100; turnoverRateElement.innerHTML = turnoverRate.toFixed(2); }