Hr Turnover Rate Calculation

Employee Turnover Rate Calculator

Calculation Results:

Turnover Rate:

Average Employee Count:

Total Turnover Cost:

function calculateTurnover() { var start = parseFloat(document.getElementById('employeesStart').value); var end = parseFloat(document.getElementById('employeesEnd').value); var departures = parseFloat(document.getElementById('departures').value); var costPerHire = parseFloat(document.getElementById('replacementCost').value); var resultDiv = document.getElementById('turnoverResult'); if (isNaN(start) || isNaN(end) || isNaN(departures)) { alert("Please enter valid numbers for employees and departures."); return; } var avgEmployees = (start + end) / 2; if (avgEmployees === 0) { alert("Average employee count cannot be zero."); return; } var turnoverRate = (departures / avgEmployees) * 100; document.getElementById('rateOutput').innerHTML = turnoverRate.toFixed(2) + "%"; document.getElementById('avgOutput').innerHTML = avgEmployees.toFixed(1); if (!isNaN(costPerHire)) { var totalCost = departures * costPerHire; document.getElementById('costOutput').innerHTML = "$" + totalCost.toLocaleString(); document.getElementById('costDisplay').style.display = "block"; } else { document.getElementById('costDisplay').style.display = "none"; } resultDiv.style.display = "block"; }

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Understanding HR Turnover Rate Calculation

Employee turnover rate is a critical Human Resources metric that measures the percentage of employees who leave an organization during a specific period (usually monthly, quarterly, or annually). High turnover can indicate issues with company culture, compensation, or management, while low turnover often suggests high employee engagement and stability.

The Standard Turnover Formula

The standard formula used by HR professionals worldwide is:

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

To find the Average Number of Employees, you add the number of employees at the beginning of the period to the number at the end, then divide by two.

Why Calculating Turnover Cost Matters

It isn't just about the percentage; it is about the bottom line. Every time an employee leaves, the company incurs costs related to:

• Recruitment: Job postings, headhunter fees, and background checks.
• Onboarding: Training time for the new hire and HR administrative hours.
• Lost Productivity: The "ramp-up" period where a new hire is not yet fully efficient.
• Knowledge Loss: Institutional knowledge that leaves with the departing employee.

Realistic Examples

Example A (Tech Startup): A company starts the year with 50 employees and ends with 70. During the year, 10 people left.
Average Employees: (50 + 70) / 2 = 60.
Turnover Rate: (10 / 60) x 100 = 16.67%.

Example B (Retail Store): A store starts the month with 20 employees and ends with 18. 4 people left during that month.
Average Employees: (20 + 18) / 2 = 19.
Turnover Rate: (4 / 19) x 100 = 21.05% per month.

What is a "Good" Turnover Rate?

While 10% is often cited as a healthy turnover rate, benchmarks vary wildly by industry. Hospitality and retail often see annual rates exceeding 60-70%, whereas government and utility sectors may see rates lower than 5%. HR leaders should compare their rate against industry averages and their own historical data to identify trends.