Employee Turnover Rate Calculator
Calculate your employee turnover rate for a specific period. This helps assess workforce stability.
Enter the number of employees at the start of the period, the number at the end of the period, and the total number of employees who left during that same period.
Enter Data
Understanding Employee Turnover Rate
What is Employee Turnover Rate?
Employee turnover rate is a metric that measures the percentage of employees who leave an organization during a specific period. It's often calculated annually but can be done monthly, quarterly, or for any defined timeframe.
Why Calculate Turnover Rate?
High turnover can be costly (recruitment, training) and may indicate issues with company culture, management, or compensation. Tracking it helps businesses understand workforce stability and identify areas for improvement.
Turnover Rate Formula
The standard formula for calculating employee turnover rate is:
Turnover Rate (%) = (Number of Employees Who Left / Average Number of Employees) * 100
Where:
- Number of Employees Who Left: The total count of employees departing during the period.
- Average Number of Employees: Usually calculated as
(Number at Start + Number at End) / 2. This provides a more stable base for the percentage than just using the start or end number alone.
Employee Turnover Rate Examples
Click on an example to see the step-by-step calculation:
Example 1: Small Business (Annual)
Scenario: A small company tracks its annual turnover.
1. Known Values: Start Employees = 50, End Employees = 45, Employees Left = 10.
2. Calculate Average Employees: Average = (50 + 45) / 2 = 95 / 2 = 47.5
3. Formula (Turnover Rate): Turnover Rate = (Employees Left / Average) * 100
4. Calculation: Turnover Rate = (10 / 47.5) * 100 ≈ 0.2105 * 100 ≈ 21.1%
Conclusion: The annual turnover rate is approximately 21.1%.
Example 2: Growing Company (Quarterly)
Scenario: A company is growing rapidly but wants to check quarterly stability.
1. Known Values: Start Employees = 200, End Employees = 230, Employees Left = 15.
2. Calculate Average Employees: Average = (200 + 230) / 2 = 430 / 2 = 215
3. Formula (Turnover Rate): Turnover Rate = (Employees Left / Average) * 100
4. Calculation: Turnover Rate = (15 / 215) * 100 ≈ 0.0698 * 100 ≈ 7.0%
Conclusion: The quarterly turnover rate is about 7.0%.
Example 3: Stable Team (Annual)
Scenario: A highly stable team has very few departures over a year.
1. Known Values: Start Employees = 30, End Employees = 29, Employees Left = 1.
2. Calculate Average Employees: Average = (30 + 29) / 2 = 59 / 2 = 29.5
3. Formula (Turnover Rate): Turnover Rate = (Employees Left / Average) * 100
4. Calculation: Turnover Rate = (1 / 29.5) * 100 ≈ 0.0339 * 100 ≈ 3.4%
Conclusion: The annual turnover rate is a low 3.4%, indicating high stability.
Example 4: High Turnover Environment (Monthly)
Scenario: Estimating monthly turnover in a sector with frequent changes.
1. Known Values: Start Employees = 80, End Employees = 70, Employees Left = 20.
2. Calculate Average Employees: Average = (80 + 70) / 2 = 150 / 2 = 75
3. Formula (Turnover Rate): Turnover Rate = (Employees Left / Average) * 100
4. Calculation: Turnover Rate = (20 / 75) * 100 ≈ 0.2667 * 100 ≈ 26.7%
Conclusion: The monthly turnover rate is a high 26.7%. This would translate to significant annual turnover if it continued.
Example 5: No Turnover (Annual)
Scenario: A company experiences zero departures over a year.
1. Known Values: Start Employees = 150, End Employees = 150, Employees Left = 0.
2. Calculate Average Employees: Average = (150 + 150) / 2 = 300 / 2 = 150
3. Formula (Turnover Rate): Turnover Rate = (Employees Left / Average) * 100
4. Calculation: Turnover Rate = (0 / 150) * 100 = 0%
Conclusion: The turnover rate is 0%.
Example 6: Downsizing (Annual)
Scenario: A company undergoing significant downsizing.
1. Known Values: Start Employees = 500, End Employees = 400, Employees Left = 120 (includes voluntary & involuntary).
2. Calculate Average Employees: Average = (500 + 400) / 2 = 900 / 2 = 450
3. Formula (Turnover Rate): Turnover Rate = (Employees Left / Average) * 100
4. Calculation: Turnover Rate = (120 / 450) * 100 ≈ 0.2667 * 100 ≈ 26.7%
Conclusion: The turnover rate is 26.7%. Note: Turnover can be voluntary or involuntary; this calculation includes all departures.
Example 7: Startup Phase (Annual)
Scenario: A new startup after its first year.
1. Known Values: Start Employees (at company launch) = 5, End Employees = 15, Employees Left = 2.
2. Calculate Average Employees: Average = (5 + 15) / 2 = 20 / 2 = 10
3. Formula (Turnover Rate): Turnover Rate = (Employees Left / Average) * 100
4. Calculation: Turnover Rate = (2 / 10) * 100 = 0.2 * 100 = 20%
Conclusion: The first-year turnover rate is 20%.
Example 8: Specific Department (Annual)
Scenario: Calculating turnover for a single department within a larger company.
1. Known Values: Start Employees (Dept) = 25, End Employees (Dept) = 22, Employees Left (Dept) = 5.
2. Calculate Average Employees: Average = (25 + 22) / 2 = 47 / 2 = 23.5
3. Formula (Turnover Rate): Turnover Rate = (Employees Left / Average) * 100
4. Calculation: Turnover Rate = (5 / 23.5) * 100 ≈ 0.2128 * 100 ≈ 21.3%
Conclusion: The turnover rate for this specific department is about 21.3%.
Example 9: Calculating for a Half-Year
Scenario: Tracking turnover for the first six months of the year.
1. Known Values: Employees on Jan 1 = 300, Employees on June 30 = 310, Employees Left (Jan-June) = 25.
2. Calculate Average Employees: Average = (300 + 310) / 2 = 610 / 2 = 305
3. Formula (Turnover Rate): Turnover Rate = (Employees Left / Average) * 100
4. Calculation: Turnover Rate = (25 / 305) * 100 ≈ 0.08197 * 100 ≈ 8.2%
Conclusion: The turnover rate for the first half of the year is approximately 8.2%.
Example 10: Seasonal Business Peak
Scenario: Calculating turnover during a busy season where many temporary staff leave afterwards.
1. Known Values: Start Employees (before season) = 50, End Employees (after season) = 60, Employees Left (during/after season) = 30.
2. Calculate Average Employees: Average = (50 + 60) / 2 = 110 / 2 = 55
3. Formula (Turnover Rate): Turnover Rate = (Employees Left / Average) * 100
4. Calculation: Turnover Rate = (30 / 55) * 100 ≈ 0.5454 * 100 ≈ 54.5%
Conclusion: The turnover rate during this period is high at 54.5%, reflecting the nature of seasonal employment.
Understanding Workforce Metrics
Beyond simple turnover rate, businesses also track metrics like retention rate, voluntary vs. involuntary turnover, and new hire turnover...
Factors Influencing Turnover
Numerous factors can contribute to turnover, including compensation, work environment, management, career development opportunities, and the job market...
Frequently Asked Questions about Employee Turnover
1. What is a "good" employee turnover rate?
There's no single "good" rate, as it varies greatly by industry, location, and economic conditions. Lower turnover is generally seen as better, but some level is normal and can even be healthy (removing low performers). Industry benchmarks are crucial for comparison.
2. Does this calculator include all types of departures?
Yes, the "Number of Employees Who Left" input should ideally include all employees who exited the company during the period, whether voluntary resignations, retirements, or involuntary terminations.
3. Why use the average number of employees?
Using the average (start + end / 2) accounts for fluctuations in workforce size during the period, providing a more stable and representative base for the percentage calculation than just using the number at the start or end.
4. How often should I calculate turnover rate?
Common periods are annually, quarterly, or even monthly, depending on the business's needs and the industry. More frequent calculation helps identify trends sooner.
5. Is a high turnover rate always bad?
While often viewed negatively due to costs, a high rate isn't *always* bad if it's due to removing consistently low performers or if the company is undergoing significant strategic changes. However, consistently high *voluntary* turnover is usually a red flag.
6. What's the difference between turnover rate and retention rate?
They are inversely related. Turnover rate measures who left, while retention rate measures who stayed. Retention Rate = (Number of Employees Who Stayed / Number of Employees at Start) * 100 (though sometimes calculated differently). High retention implies low turnover.
7. Can I use this for a specific department or team?
Yes, you can apply the same formula to calculate the turnover rate for a specific department, team, or location by using the relevant employee numbers for that group.
8. What if the average number of employees is zero?
This would only happen if both the starting and ending number of employees are zero. In this rare case (e.g., a business hasn't started or has completely shut down within the period), the concept of turnover doesn't meaningfully apply, and the calculator would indicate an error or result in division by zero.
9. Are contract workers or freelancers included?
This calculation typically applies to permanent or full-time equivalent (FTE) employees on payroll. For consistency, decide whether to include specific types of workers (like long-term contractors) and apply it uniformly across your calculations.
10. How can I reduce high employee turnover?
Reducing high turnover often involves analyzing the reasons for departure (exit interviews), improving hiring processes, enhancing company culture, reviewing compensation and benefits, providing development opportunities, and improving management effectiveness.
