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Employee Turnover Equation:
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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 employee retention and identify potential issues in the workplace.
The calculator uses the standard turnover rate formula:
Where:
Explanation: The formula calculates what percentage of your workforce departed during the measurement period.
Details: Tracking turnover helps organizations measure retention, estimate hiring needs, and identify potential problems in workplace culture or compensation. High turnover can indicate employee dissatisfaction and lead to increased recruitment costs.
Tips: Enter the number of employees who departed during your measurement period and the average number of employees during that same period. Both values must be positive numbers, with average headcount greater than zero.
Q1: What's a good turnover rate?
A: Industry standards vary, but generally 10-15% is considered normal for many industries. Rates above 20% may indicate problems.
Q2: Should voluntary and involuntary turnover be separated?
A: Yes, for deeper analysis. Voluntary turnover (resignations) and involuntary (terminations) often have different causes and implications.
Q3: What time period should I use?
A: Common periods are monthly, quarterly, or annually. Use whatever matches your reporting cycle.
Q4: How do I calculate average headcount?
A: Add the number of employees at the start and end of the period, then divide by 2. For more accuracy, use monthly averages.
Q5: Does this include all departures?
A: Typically yes, unless you're calculating specific types of turnover (like voluntary only). Be consistent in your measurement approach.