Analyze your workforce stability by calculating the percentage of employees leaving during a specific period.
Monthly/Annual Turnover Rate
0%
What is the Labor Turnover Rate?
The Labor Turnover Rate is a critical Human Resources metric that measures the percentage of employees who leave an organization during a specific period (usually monthly or annually) relative to the total number of employees. High turnover often signals issues with company culture, compensation, or management, while extremely low turnover might suggest stagnation.
How to Calculate Labor Turnover Rate
The standard formula used by this calculator is:
Turnover Rate = (Number of Separations / Average Number of Employees) × 100
To find the Average Number of Employees, we use:
Average = (Employees at Start + Employees at End) / 2
Real-World Example:
A tech company starts the quarter with 200 employees and ends with 220. During that quarter, 10 people left the company.
Monitoring this metric helps businesses identify retention problems before they become systemic. High turnover leads to increased recruitment costs, loss of institutional knowledge, and decreased team morale. By tracking turnover by department, companies can pinpoint specific leadership or structural issues that need addressing.
Benchmark Figures
Average turnover varies significantly by industry. For instance, hospitality and retail often see annual rates exceeding 50-70%, while government or utility sectors may see rates lower than 10%. Generally, a healthy turnover rate for most professional industries is considered to be around 10% to 15% annually.
function calculateLaborTurnover() {
var start = parseFloat(document.getElementById("startEmployees").value);
var end = parseFloat(document.getElementById("endEmployees").value);
var leavers = parseFloat(document.getElementById("leavers").value);
var resultDiv = document.getElementById("turnoverResult");
var rateDisplay = document.getElementById("rateValue");
var avgDisplay = document.getElementById("averageStaff");
// Validation
if (isNaN(start) || isNaN(end) || isNaN(leavers) || start < 0 || end < 0 || leavers < 0) {
alert("Please enter valid positive numbers for all fields.");
return;
}
// Calculation Logic
var averageEmployees = (start + end) / 2;
if (averageEmployees === 0) {
rateDisplay.innerHTML = "0%";
avgDisplay.innerHTML = "Average Employees: 0";
resultDiv.style.display = "block";
return;
}
var turnoverRate = (leavers / averageEmployees) * 100;
// Output formatting
rateDisplay.innerHTML = turnoverRate.toFixed(2) + "%";
avgDisplay.innerHTML = "Based on an average workforce of " + averageEmployees.toFixed(1) + " employees.";
resultDiv.style.display = "block";
resultDiv.scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}