How to Calculate Turnover Rate Monthly

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Monthly Employee Turnover Calculator

Monthly Turnover Rate:
0%

Understanding Monthly Employee Turnover Rate

Monthly employee turnover rate is a critical Human Resources metric that measures the percentage of employees who leave an organization during a specific month. High turnover can indicate issues with workplace culture, compensation, or management, while a healthy turnover rate suggests a stable and engaged workforce.

How to Calculate Turnover Rate Monthly (The Formula)

To calculate your monthly turnover rate, you need three specific numbers: the number of employees at the beginning of the month, the number of employees at the end of the month, and the total number of people who left (separations) during that period.

Turnover Rate = (Separations ÷ Average Number of Employees) × 100

The "Average Number of Employees" is calculated by adding the starting and ending headcounts and dividing by two:

Average Headcount = (Start Count + End Count) ÷ 2

Step-by-Step Calculation Example

Let's say your department started the month of June with 50 employees. During the month, 4 people resigned, and you hired 2 new people. Your ending count for June would be 48 employees.

  • Step 1: Calculate Average Headcount
    (50 + 48) ÷ 2 = 49
  • Step 2: Divide Separations by Average
    4 ÷ 49 = 0.0816
  • Step 3: Convert to Percentage
    0.0816 × 100 = 8.16%

In this example, your monthly turnover rate is 8.16%.

What is a "Good" Monthly Turnover Rate?

Benchmarks vary significantly by industry. For example, the hospitality and retail industries typically experience much higher turnover (often exceeding 5% monthly) than the government or finance sectors (which may see less than 1%).

Generally, a monthly turnover rate of 1% to 1.5% is considered healthy across many corporate sectors, equating to an annual rate of roughly 12% to 18%.

Why Tracking This Metric Matters

Tracking turnover monthly rather than just annually allows management to react quickly to trends. If you notice a sudden spike in a specific month, you can investigate if it was related to a specific management change, a competitor's hiring push, or seasonal factors. Reducing turnover saves the organization significant money in recruitment, onboarding, and lost productivity costs.

function calculateTurnover() { var startCount = parseFloat(document.getElementById('startCount').value); var endCount = parseFloat(document.getElementById('endCount').value); var separations = parseFloat(document.getElementById('separations').value); // Validation if (isNaN(startCount) || isNaN(endCount) || isNaN(separations)) { alert("Please enter valid numbers in all fields."); return; } if (startCount < 0 || endCount < 0 || separations 0) { document.getElementById('rateOutput').innerText = "100%"; document.getElementById('detailsOutput').innerText = "With an average headcount of 0, any separation represents a total turnover."; } else { document.getElementById('rateOutput').innerText = "0%"; document.getElementById('detailsOutput').innerText = "No employees were active during this period."; } } else { var turnoverRate = (separations / averageHeadcount) * 100; // Display result document.getElementById('rateOutput').innerText = turnoverRate.toFixed(2) + "%"; document.getElementById('detailsOutput').innerText = "Based on an average headcount of " + averageHeadcount.toFixed(1) + " employees."; } // Show result box document.getElementById('turnoverResult').style.display = "block"; }

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