Turnover Rate Calculator
Calculate employee turnover rate and analyze workforce retention for HR performance metrics
Calculate Employee Turnover Rate
Known Average Method
Average workforce size during the period
Total departures during the period
Turnover Rate Results
Calculation Details
Formula: Turnover Rate = (Employees Who Left ÷ Average Employees) × 100%
Calculation: (15 ÷ 100.0) × 100% = 15.0%
Performance Assessment
Rating: Above Average
Recommendation: High turnover. Investigate causes and implement retention strategies.
Additional Metrics
Monthly Rate: 1.3%
Employees Retained: 85
Est. Replacement Cost: $2,25,000
Est. Total Impact: $6,00,000
Example Calculation
Known Average Example
Average Employees: 100
Employees Left: 15
Formula: (15 ÷ 100) × 100%
Result: 15% turnover rate
Calculate Average Example
Beginning: 120 employees
Ending: 80 employees
Left: 40 employees
Average: (120 + 80) ÷ 2 = 100
Rate: (40 ÷ 100) × 100% = 40%
Industry Benchmarks
Your rate (15.0%) compared to industry averages. Green indicates better than benchmark.
Why Track Turnover Rate?
Cost Management
Reduce recruitment and training costs
Average replacement cost: $15,000
Performance Insights
Measure employee satisfaction
Identify retention opportunities
Strategic Planning
Improve HR policies and culture
Build competitive advantage
Understanding Employee Turnover Rate
What is Turnover Rate?
Employee turnover rate is a key HR metric that measures the percentage of employees who leave a company during a specific period. It helps organizations assess their ability to retain talent and identify potential issues in company culture, management, or compensation.
Types of Turnover
- •Voluntary: Employees choose to leave (resignations)
- •Involuntary: Company-initiated departures (layoffs, terminations)
- •Functional: Poor performers leaving (beneficial)
- •Dysfunctional: High performers leaving (costly)
Calculation Methods
Basic Formula:
Turnover Rate = (Employees Left ÷ Average Employees) × 100%
Average Calculation:
Average = (Beginning + Ending) ÷ 2
Key Considerations
- Time Period: Usually calculated annually or monthly
- Exclusions: Don't count internal transfers or promotions
- Temporary Leave: Exclude maternity/sabbatical leaves
- Industry Context: Compare with industry benchmarks
Good Rate: Generally, 10% or lower is considered healthy, but varies by industry.
Factors Affecting Turnover Rate
High Turnover Causes
- • Poor management practices
- • Inadequate compensation
- • Limited career growth
- • Poor work-life balance
- • Toxic company culture
- • Lack of recognition
- • Insufficient training
Retention Strategies
- • Competitive compensation packages
- • Clear career development paths
- • Regular feedback and recognition
- • Flexible work arrangements
- • Strong company culture
- • Professional development opportunities
- • Employee wellness programs
Monitoring Best Practices
- • Track monthly and annual rates
- • Segment by department/role
- • Conduct exit interviews
- • Compare with industry benchmarks
- • Analyze voluntary vs involuntary
- • Calculate cost impact
- • Set retention targets
Cost Impact of Turnover
Direct Costs
- • Recruitment and hiring expenses
- • Training and onboarding costs
- • Overtime for remaining staff
- • Temporary staffing costs
- • Exit processing expenses
Indirect Costs
- • Lost productivity during transition
- • Reduced team morale
- • Knowledge and skill loss
- • Customer service disruption
- • Increased error rates
Industry Average: Replacing an employee typically costs 50-200% of their annual salary, depending on the role level and industry.
Frequently Asked Questions
What is a good employee turnover rate?
A "good" turnover rate varies by industry. Generally, 10% or lower is considered healthy for most sectors. Technology companies average around 13.2%, while hospitality can see rates as high as 82%. The key is to compare your rate against industry benchmarks and identify whether turnover is voluntary or involuntary, and whether it's affecting your high performers.
How often should I calculate turnover rate?
Most organizations calculate turnover rates on both monthly and annual bases. Monthly tracking helps identify trends quickly, while annual rates provide a broader perspective for strategic planning. Some companies also track quarterly rates to balance between immediate insights and long-term patterns. The frequency should align with your business cycle and HR strategic planning needs.
Should I include all departures in my turnover calculation?
It depends on what you're measuring. For overall turnover rate, include all departures (resignations, terminations, layoffs, retirements). However, for more accurate analysis, separate voluntary from involuntary turnover. Exclude internal transfers, promotions, and temporary leaves (maternity, sabbatical) as these don't represent true departures from the organization.
What's the difference between turnover rate and retention rate?
Turnover rate measures the percentage of employees who leave, while retention rate measures the percentage who stay. They are complementary metrics: Retention Rate = 100% - Turnover Rate. For example, if your turnover rate is 15%, your retention rate is 85%. Both metrics are useful, but retention rate emphasizes the positive aspect of keeping employees.
How much does employee turnover really cost?
The true cost of turnover ranges from 50% to 200% of an employee's annual salary, depending on their role and seniority. This includes direct costs (recruitment, hiring, training) and indirect costs (lost productivity, reduced morale, knowledge loss). For a mid-level employee earning $50,000, replacement costs could range from $25,000 to $100,000. Executive-level positions can cost even more.
What actions should I take if my turnover rate is high?
Start by conducting exit interviews to understand why employees are leaving. Common causes include poor management, inadequate compensation, limited growth opportunities, or toxic culture. Based on findings, implement targeted strategies: improve compensation and benefits, enhance career development programs, invest in manager training, foster better work-life balance, and strengthen company culture. Monitor the impact of these changes on your turnover rate over time.