1. What is Monthly Turnover Rate?

The Monthly Turnover Rate measures the percentage of employees who leave an organization during a given month relative to the average number of employees during that month. It's a key HR metric for understanding employee retention and organizational health.

2. How Does the Calculator Work?

The calculator uses the monthly turnover formula:

Where:

• Monthly Leavers — Number of employees who left during the month
• Monthly Avg Employees — Average number of employees during the month

Explanation: The formula calculates what percentage of your workforce left during the month. A higher percentage indicates higher turnover.

3. Importance of Turnover Calculation

Details: Tracking turnover helps organizations identify retention problems, calculate hiring needs, and estimate costs associated with employee replacement (recruiting, training, lost productivity).

4. Using the Calculator

Tips: Enter the number of employees who left during the month and the average number of employees during that month. Both values must be positive numbers (average employees must be greater than 0).

5. Frequently Asked Questions (FAQ)

Q1: What's a good monthly turnover rate?
A: This varies by industry. Generally under 2% is good for most industries, while rates above 5% 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 solutions.

Q3: How is monthly average employees calculated?
A: Typically the average of employee counts at the start and end of the month: (Beginning count + Ending count) / 2.

Q4: Does this include new hires?
A: No, turnover rate only includes employees who left. New hires would be reflected in your average employee count.

Q5: How often should turnover be calculated?
A: Monthly calculation is useful for spotting trends, but many organizations also track quarterly and annual rates.