Workforce Data
Turnover Metrics
An Employee Turnover Calculator is a vital human resources tool used to measure the rate at which staff leave a company over a specific period. High turnover rates can indicate issues with company culture, management, or compensation, while tracking these metrics helps businesses plan for recruitment and training costs.
How to Calculate Employee Turnover Rate
Calculating your turnover rate requires three basic numbers: the number of employees you started with, the number of employees you ended with, and the total number of people who left the company during that time frame.
Average Employees = (Starting Employees + Ending Employees) / 2
Turnover Rate = (Employees Who Left / Average Employees) * 100
For example, if you start the year with 100 employees and end with 110, your average headcount is 105. If 12 employees resigned or were terminated during that year, you divide 12 by 105 to get roughly 0.114. Multiplying this by 100 gives an annual turnover rate of 11.4 percent.
How to Use This HR Tool
- Enter the total number of employees working at your company on the first day of the period (e.g., January 1st).
- Enter the total number of employees working on the very last day of the period (e.g., December 31st).
- Input the exact number of employees who left the organization for any reason, including resignations, retirements, and terminations.
- Instantly view your calculated Employee Turnover Rate on the main dashboard card.
- Review your Retention Rate to see the percentage of your workforce that successfully stayed with your company.
Frequently Asked Questions
What is considered a good turnover rate?
A "good" turnover rate varies heavily by industry. Generally, a rate around 10 percent is considered extremely healthy and normal. Industries like retail, hospitality, and customer service naturally experience much higher turnover rates, sometimes exceeding 30 or 40 percent.
Should I include temporary workers in the calculation?
Most HR professionals do not include temporary contractors or seasonal workers in their primary turnover calculations. Doing so can artificially inflate your turnover rate. It is best to only track full-time and permanent part-time employees when measuring corporate retention.
Why is high turnover bad for business?
High employee turnover is incredibly expensive. Replacing a trained employee requires spending money on job advertisements, interviewing time, onboarding, and training. Additionally, frequent departures can lower the morale of the remaining staff and temporarily reduce overall company productivity.