How to Calculate Resignation Rate

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Resignation Rate Calculator

Employee Headcount (Start of Period)

Employee Headcount (End of Period)

Number of Resignations (Voluntary Exits)

Please enter valid non-negative numbers.

Resignation Rate

0.00%

Based on an average headcount of 0 employees.

Understanding your organization's resignation rate is crucial for maintaining a healthy workforce and minimizing costly turnover. The resignation rate, often referred to as the voluntary turnover rate, specifically measures the percentage of employees who choose to leave the company within a given period, excluding involuntary terminations such as layoffs.

The Resignation Rate Formula

To calculate the resignation rate accurately, you need three key data points: the number of employees at the beginning of the period, the number of employees at the end of the period, and the total number of voluntary resignations during that time.

The standard formula is:

            Rate = (Resignations / Average Headcount) × 100
        

Where:

Average Headcount = (Start Headcount + End Headcount) / 2

Example Calculation

Let's say a marketing agency wants to calculate their resignation rate for Q1.

Start Headcount (Jan 1): 200 employees
End Headcount (Mar 31): 220 employees
Resignations: 15 employees left voluntarily

First, calculate the average headcount: (200 + 220) / 2 = 210.

Next, divide resignations by the average: 15 / 210 = 0.0714.

Finally, multiply by 100 to get the percentage: 7.14%.

Why Monitor Resignation Rate?

Tracking this metric helps HR professionals and business leaders identify underlying issues in company culture, compensation competitiveness, or management effectiveness. A high resignation rate is often a lagging indicator of employee dissatisfaction, while a low rate suggests strong engagement and retention.

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Resignation Rate Calculator