Employee Turnover Calculation

Employee Turnover Rate Calculator

Calculation Results

Turnover Rate

0%

Average Workforce Size

0

Estimated Turnover Cost

$0

function calculateEmployeeTurnover() { var start = parseFloat(document.getElementById('startEmployees').value); var end = parseFloat(document.getElementById('endEmployees').value); var departures = parseFloat(document.getElementById('departures').value); var cost = parseFloat(document.getElementById('avgCostPerHire').value) || 0; if (isNaN(start) || isNaN(end) || isNaN(departures)) { alert('Please enter valid numbers for employees and departures.'); return; } var avgWorkforce = (start + end) / 2; if (avgWorkforce === 0) { alert('Average workforce size cannot be zero.'); return; } var turnoverRate = (departures / avgWorkforce) * 100; var totalCost = departures * cost; document.getElementById('resTurnoverRate').innerHTML = turnoverRate.toFixed(2) + '%'; document.getElementById('resAvgWorkforce').innerHTML = avgWorkforce.toFixed(1); document.getElementById('resTotalCost').innerHTML = '$' + totalCost.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0}); document.getElementById('turnoverResults').style.display = 'block'; }

Understanding Employee Turnover Calculation

Employee turnover refers to the percentage of workers who leave an organization and are replaced by new employees. Measuring this metric is critical for HR departments to assess organizational health, workplace culture, and recruitment efficiency.

The Employee Turnover Formula

Turnover Rate = (Number of Departures / Average Number of Employees) x 100

To calculate the Average Number of Employees, you take the headcount at the beginning of a specific period (like a month or a year), add it to the headcount at the end of that period, and divide by two.

Why High Turnover Matters

• Financial Impact: Losing an employee often costs 50% to 200% of their annual salary due to recruitment, onboarding, and training expenses.
• Reduced Productivity: While a role is vacant and during the new hire's learning curve, output drops significantly.
• Morale Issues: High turnover can lead to "burnout" for the remaining employees who must cover additional workloads.
• Knowledge Loss: Institutional knowledge and client relationships often leave the building when a veteran employee departs.

Calculation Example

Imagine a software company that started the year with 200 employees. By the end of the year, they had 220 employees. During that year, 30 people left the company.

1. Average Employees: (200 + 220) / 2 = 210
2. Turnover Rate: (30 / 210) x 100 = 14.28%
3. Cost Analysis: If the average cost to replace a developer is $15,000, the total cost for the year is 30 x $15,000 = $450,000.

How to Improve Your Rate

If your calculator results show a rate higher than your industry average, consider focusing on competitive compensation, professional development opportunities, and flexible work arrangements. Regular stay interviews and exit interviews can also provide data-driven insights into why people leave.