How to Calculate Employee Turnover Rate by Month

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Monthly Employee Turnover Calculator

Monthly Results

Average Monthly Workforce: 0

Monthly Turnover Rate: 0%

function calculateTurnover() { var start = parseFloat(document.getElementById('startEmployees').value); var end = parseFloat(document.getElementById('endEmployees').value); var leavers = parseFloat(document.getElementById('totalLeavers').value); var resultsDiv = document.getElementById('resultsArea'); if (isNaN(start) || isNaN(end) || isNaN(leavers) || start < 0 || end < 0 || leavers 10) { interpretationMsg = "Note: A monthly turnover rate above 10% is generally considered high in most industries and may require a retention strategy review."; } else if (turnoverRate > 5) { interpretationMsg = "Your turnover rate is moderate. Tracking this month-over-month will help identify seasonal trends."; } else { interpretationMsg = "Your monthly turnover rate is healthy. Maintain current engagement levels."; } document.getElementById('interpretation').innerHTML = interpretationMsg; resultsDiv.style.display = 'block'; }

How to Calculate Employee Turnover Rate by Month

Understanding your monthly employee turnover rate is critical for HR professionals and business owners. It provides a real-time health check on your company culture, compensation competitiveness, and management effectiveness.

The Monthly Turnover Formula

Turnover Rate = (Number of Leavers / Average Number of Employees) x 100

Step-by-Step Calculation Guide

  1. Count leavers: Include all voluntary and involuntary departures (resignations, terminations, retirements) that occurred during the specific month.
  2. Calculate average headcount: Add the number of employees you had on the 1st of the month to the number on the last day of the month, then divide by two.
  3. Divide and Multiply: Divide the number of leavers by your average headcount and multiply by 100 to get the percentage.

Practical Example

Suppose your tech startup began January with 50 employees. By January 31st, you grew to 54 employees, but 2 people resigned during the month.

  • Step 1: Average Employees = (50 + 54) / 2 = 52
  • Step 2: 2 (Leavers) / 52 (Average) = 0.0384
  • Step 3: 0.0384 x 100 = 3.84% Monthly Turnover

Frequently Asked Questions

Should I include temporary staff or contractors?

Standard HR metrics usually only include "permanent" full-time and part-time employees. However, consistency is key; if you include them once, include them every month.

What is a 'good' monthly turnover rate?

It varies by industry. Retail and hospitality often see monthly rates of 5-10%, whereas professional services usually aim for under 1.5% per month (roughly 15-18% annually).

Why track monthly instead of annually?

Monthly tracking allows you to spot immediate reactions to company changes, such as a new policy rollout, a management change, or seasonal burnout.

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