Employee turnover rate is the percentage of employees who leave an organization during a specific time period (monthly, quarterly, or annually). It is a vital metric for HR departments to monitor company health, culture, and retention strategies.
The Standard Formula
Turnover Rate = (Number of Departures / Average Number of Employees) x 100
To find the Average Number of Employees, you add the starting headcount and ending headcount for the period, then divide by two.
Why Tracking Turnover Matters
Cost Savings: Replacing an employee can cost 1.5 to 2 times their annual salary in recruiting and training.
Workplace Culture: High turnover can signal toxic management or poor work-life balance.
Productivity: Constant vacancies lead to gaps in institutional knowledge and lower team output.
Real-World Example
If a retail store starts the year with 50 employees, ends with 60 employees, and 10 people quit during the year:
Average Employees: (50 + 60) / 2 = 55
Turnover Calculation: (10 / 55) x 100 = 18.18%
The annual turnover rate for this store would be 18.18%.
function calculateTurnover() {
var startVal = document.getElementById('startCount').value;
var endVal = document.getElementById('endCount').value;
var depVal = document.getElementById('departures').value;
var startCount = parseFloat(startVal);
var endCount = parseFloat(endVal);
var departures = parseFloat(depVal);
var resultArea = document.getElementById('resultArea');
var turnoverResult = document.getElementById('turnoverResult');
var avgResult = document.getElementById('avgResult');
if (isNaN(startCount) || isNaN(endCount) || isNaN(departures)) {
alert("Please enter valid numbers for all fields.");
return;
}
if (startCount < 0 || endCount < 0 || departures < 0) {
alert("Numbers cannot be negative.");
return;
}
var averageEmployees = (startCount + endCount) / 2;
if (averageEmployees === 0) {
alert("Average headcount cannot be zero.");
return;
}
var turnoverRate = (departures / averageEmployees) * 100;
turnoverResult.innerHTML = turnoverRate.toFixed(2) + "%";
avgResult.innerHTML = "Based on an average headcount of " + averageEmployees.toFixed(1) + " employees.";
resultArea.style.display = 'block';
// Smooth scroll to result
resultArea.scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}