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Turnover Rate Formula:
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The Employee Turnover Rate measures the percentage of employees who leave an organization during a specific period. It's a key HR metric that helps organizations understand workforce stability and retention effectiveness.
The calculator uses the Turnover Rate formula:
Where:
Explanation: This formula calculates the proportion of employees who departed relative to the average workforce size, expressed as a percentage.
Details: Monitoring turnover rate helps organizations identify retention issues, calculate recruitment costs, improve employee satisfaction, and maintain organizational knowledge and stability.
Tips: Enter the number of employees who left during the period and the average number of employees. Both values must be positive integers, with average employees greater than zero.
Q1: What is considered a good turnover rate?
A: Ideal rates vary by industry, but generally 10-15% annually is considered healthy. Rates above 20% may indicate retention problems.
Q2: How do I calculate average employees?
A: Average employees = (Number at start of period + Number at end of period) ÷ 2, or sum of monthly averages ÷ number of months.
Q3: Should voluntary and involuntary turnover be separated?
A: Yes, analyzing voluntary vs involuntary turnover separately provides better insights into different aspects of workforce management.
Q4: What time period should I use?
A: Typically calculated annually, but can be calculated for any period (quarterly, monthly) as long as consistent time frames are used.
Q5: How does turnover rate affect business costs?
A: High turnover increases costs through recruitment, training, lost productivity, and decreased morale among remaining staff.