Labour Turnover Rate Calculation

Labour Turnover Rate Calculator

Measure your employee retention and workforce stability.

Results

Average Employees –

Turnover Rate –

function calculateTurnover() { var start = parseFloat(document.getElementById('startEmployees').value); var end = parseFloat(document.getElementById('endEmployees').value); var leavers = parseFloat(document.getElementById('totalLeavers').value); var resultDiv = document.getElementById('turnover-result'); if (isNaN(start) || isNaN(end) || isNaN(leavers) || start < 0 || end < 0 || leavers < 0) { alert('Please enter valid positive numbers for all fields.'); return; } var average = (start + end) / 2; if (average === 0) { alert('Average employees cannot be zero.'); return; } var rate = (leavers / average) * 100; document.getElementById('displayAverage').innerText = average.toFixed(2); document.getElementById('displayRate').innerText = rate.toFixed(2) + '%'; resultDiv.style.display = 'block'; resultDiv.style.backgroundColor = '#ecf0f1'; resultDiv.style.borderLeft = '5px solid #3498db'; }

Labour turnover is a critical HR metric that represents the percentage of employees who leave an organization over a specific period, such as a month or a year. High turnover can indicate issues within your corporate culture, recruitment process, or compensation structure, while extremely low turnover might suggest stagnation.

The Labour Turnover Formula

Calculating your turnover rate requires three primary figures: the headcount at the beginning of the period, the headcount at the end, and the total number of staff exits. The standard formula used by HR professionals is:

Labour Turnover Rate = (Total Number of Leavers / Average Number of Employees) x 100

To find the Average Number of Employees, simply add your starting and ending employee counts and divide by two.

Real-World Example

Let's look at a practical calculation for a mid-sized tech company over a fiscal year:

• Employees on January 1st: 200
• Employees on December 31st: 220
• Employees who left during the year: 30

Step 1: Calculate Average Employees
(200 + 220) / 2 = 210 Average Employees.

Step 2: Apply the Turnover Formula
(30 / 210) x 100 = 14.29% Turnover Rate.

Why You Should Track Turnover

Monitoring this metric allows businesses to identify trends before they become systemic problems. Common reasons for high turnover include:

1. Inadequate Compensation: Employees leaving for better salaries or benefits elsewhere.
2. Poor Management: The old adage "employees don't quit jobs, they quit managers" often holds true.
3. Lack of Career Growth: A lack of promotion opportunities or training.
4. Mismatched Expectations: The job role differs significantly from the initial description.

What is a "Good" Turnover Rate?

There is no single "perfect" number, as turnover varies significantly by industry. For example, the hospitality and retail sectors often see annual turnover rates exceeding 60-70%, whereas the public sector or financial services might average 10-15%. As a general rule, a turnover rate around 10% is considered healthy in most professional industries, allowing for fresh talent infusion without disrupting operational continuity.