Staff Turnover Rate Calculation

Staff Turnover Rate Calculator

Understanding Staff Turnover Rate

Staff turnover rate, also known as employee churn, is a metric used by businesses to measure the percentage of employees who leave an organization over a specific period. It's a crucial indicator of employee satisfaction, company culture, and overall organizational health. A high turnover rate can be costly, involving expenses related to recruitment, hiring, onboarding, and lost productivity. Conversely, a low turnover rate often suggests a positive work environment and engaged workforce.

Calculating staff turnover rate helps organizations identify potential issues and implement strategies to improve employee retention. Understanding the reasons behind departures (e.g., voluntary resignations, layoffs, terminations) is also vital for a comprehensive analysis.

How to Calculate Staff Turnover Rate:

The formula for staff turnover rate is:

Turnover Rate = (Number of Employees Who Left During the Period / Average Number of Employees During the Period) * 100

To find the Average Number of Employees During the Period, you typically use:

Average Employees = (Number of Employees at the Beginning of the Period + Number of Employees at the End of the Period) / 2

In this calculator, we use the number of employees who left (terminations) to calculate the rate.

Example Calculation:

Let's say your company has:

• 100 employees at the beginning of the quarter.
• 110 employees at the end of the quarter.
• 25 new hires during the quarter.
• 15 employees who left (terminations) during the quarter.

First, calculate the average number of employees:

Average Employees = (100 + 110) / 2 = 105

Then, calculate the turnover rate:

Turnover Rate = (15 / 105) * 100 = 14.29%

This means that approximately 14.29% of your average workforce left the company during that quarter.

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