Calculating Turnover Rate

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Employee Turnover Rate Calculator

Measure and analyze your workforce retention efficiency

Analysis Results

Average Headcount:
Turnover Rate:
Retention Rate:
Total Estimated Cost:

Understanding Employee Turnover Rates

Employee turnover rate is a critical Human Resources metric that measures the percentage of employees who leave an organization during a specific period. High turnover can indicate issues with company culture, compensation, or management, while low turnover typically reflects a stable and satisfied workforce.

How to Calculate Turnover Rate

The standard formula for calculating employee turnover involves three primary steps:

  1. Calculate Average Headcount: Add the number of employees at the beginning of the period to the number at the end of the period, then divide by 2.
  2. Identify Separations: Count the total number of employees who left (voluntarily or involuntarily) during that same period.
  3. The Final Calculation: Divide the number of separations by the average headcount and multiply by 100.
The Formula:
(Number of Separations / [(Start Count + End Count) / 2]) x 100 = Turnover Rate %

Example Calculation

Imagine a software company starts the quarter with 200 employees and ends with 210 employees. During those three months, 15 people left the company.

  • Average Headcount: (200 + 210) / 2 = 205
  • Turnover Rate: (15 / 205) x 100 = 7.32%

If the average cost to replace an employee (hiring, training, lost productivity) is $15,000, this quarter's turnover cost the company $225,000.

What is a "Good" Turnover Rate?

Benchmarks vary significantly by industry. While the technology sector might see annual turnover rates around 13-15%, the hospitality and retail industries often experience rates exceeding 60-70%. Generally, a "healthy" turnover rate is considered to be around 10% annually across all industries, but HR experts recommend comparing your rates against previous years and direct industry competitors rather than a global average.

function calculateTurnover() { var start = parseFloat(document.getElementById('startEmployees').value); var end = parseFloat(document.getElementById('endEmployees').value); var separations = parseFloat(document.getElementById('separations').value); var costPerExit = parseFloat(document.getElementById('costPerExit').value); // Validation if (isNaN(start) || isNaN(end) || isNaN(separations) || start < 0 || end < 0 || separations < 0) { alert("Please enter valid positive numbers for headcount and separations."); return; } // Average Headcount Calculation var avgHeadcount = (start + end) / 2; if (avgHeadcount === 0) { alert("Average headcount cannot be zero."); return; } // Turnover Rate Calculation var turnoverRate = (separations / avgHeadcount) * 100; // Retention Rate Calculation (Simplified) // Retention is often (Employees who stayed / Start Headcount) * 100 var stayed = start – separations; if (stayed < 0) stayed = 0; // Prevent negative logic var retentionRate = (stayed / start) * 100; if (isNaN(retentionRate) || retentionRate 100 ? 100 : retentionRate.toFixed(2)) + "%"; // Cost Calculation if (!isNaN(costPerExit) && costPerExit > 0) { var totalCost = separations * costPerExit; document.getElementById('costSection').style.display = 'flex'; document.getElementById('resTotalCost').innerText = "$" + totalCost.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); } else { document.getElementById('costSection').style.display = 'none'; } // Scroll to results on mobile if (window.innerWidth < 600) { document.getElementById('turnoverResults').scrollIntoView({ behavior: 'smooth' }); } }

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