function calculateTurnover() {
// Get input values
var startCount = document.getElementById('headcountStart').value;
var endCount = document.getElementById('headcountEnd').value;
var seps = document.getElementById('separations').value;
// Parse values
var start = parseFloat(startCount);
var end = parseFloat(endCount);
var left = parseFloat(seps);
// Validation
if (isNaN(start) || isNaN(end) || isNaN(left)) {
alert("Please enter valid numbers for all fields.");
return;
}
if (start < 0 || end < 0 || left 0) {
turnoverRate = (left / averageEmployees) * 100;
}
// Display Results
document.getElementById('displayAvg').innerHTML = averageEmployees.toLocaleString(undefined, {minimumFractionDigits: 1, maximumFractionDigits: 1});
document.getElementById('displayRate').innerHTML = turnoverRate.toFixed(2) + "%";
// Show result box
document.getElementById('result').style.display = 'block';
}
How to Calculate Annual Employee Turnover Rate
Calculating your employee turnover rate is essential for understanding the health of your organization's culture, the effectiveness of your hiring process, and your overall retention strategies. A high turnover rate can indicate dissatisfaction or competitive issues, while an extremely low rate might suggest stagnation.
The Turnover Rate Formula
The standard formula used by HR professionals to calculate the annual turnover rate involves three specific data points: the number of employees at the beginning of the year, the number at the end of the year, and the total number of employees who left during that period.
Formula: Turnover Rate = (Total Separations / Average Number of Employees) × 100
To use this formula effectively, follow these steps:
Determine the Start Count: The number of employees on the payroll on January 1st (or the start of your fiscal year).
Determine the End Count: The number of employees on the payroll on December 31st (or the end of your fiscal year).
Calculate the Average: Add the Start Count and End Count together, then divide by 2.
Count Separations: Tally the total number of employees who left the company (voluntarily or involuntarily) during the year.
Divide and Multiply: Divide the Separations by the Average, then multiply by 100 to get the percentage.
Detailed Calculation Example
Let's look at a practical example for a mid-sized tech company.
In this example, the company has an annual turnover rate of roughly 14.3%.
What Counts as a Separation?
When inputting "Number of Separations" into the calculator, ensure you include all types of departures unless you are calculating a specific type of turnover (like voluntary turnover). Generally, separations include:
Voluntary Resignations: Employees leaving for better opportunities, relocation, or dissatisfaction.
Involuntary Terminations: Layoffs, firings for cause, or performance-based terminations.
Retirements: Employees leaving the workforce entirely.
Note: Usually, temporary leaves of absence or internal transfers are not counted as separations for company-wide turnover.
Interpreting Your Results
Is your turnover rate good or bad? It depends largely on your industry. For example, the retail and hospitality industries often see turnover rates above 60%, while the government or educational sectors might see rates as low as 10%.
Healthy Turnover: Some turnover is good; it brings fresh ideas and prevents stagnation.
High Turnover: Often signals poor management, low compensation, or a toxic culture. It is expensive due to recruitment and training costs.
Low Turnover: Usually positive, but if it approaches 0%, it might mean you are retaining underperformers.