HR Turnover & Retention Calculator
Results Overview
Includes recruitment, training, and productivity loss.
Understanding HR Metrics: Turnover and Retention
In human resources management, tracking the flow of talent is critical for maintaining operational efficiency and financial health. This HR calculator helps you measure two of the most vital Key Performance Indicators (KPIs): Turnover Rate and Retention Rate, while quantifying the financial impact of employee departures.
How to Calculate Employee Turnover Rate
The Turnover Rate is the percentage of employees who leave an organization during a specific period (usually a month or a year). To calculate it manually, use the following formula:
For example, if you started the year with 95 employees and ended with 105, your average headcount is 100. If 10 people left during that year, your turnover rate is 10%.
The Real Cost of Employee Turnover
Many organizations underestimate how much a departure actually costs. Studies by SHRM suggest that replacing an employee can cost anywhere from 33% to 200% of their annual salary. These costs include:
- Recruitment: Advertising fees, background checks, and interviewing time.
- Onboarding: Training materials and management time.
- Lost Productivity: The period before a new hire reaches full proficiency (often 3-6 months).
- Cultural Impact: Decreased morale among remaining staff.
Why Tracking Retention Matters
While turnover focuses on those who leave, the Retention Rate measures the percentage of employees who stayed for the entire duration of the tracking period. High retention rates often correlate with higher customer satisfaction, better internal knowledge sharing, and stronger company culture. If your turnover rate is consistently above 15-20% (depending on the industry), it may be time to review your compensation strategy or workplace environment.