1. What is Turnover Rate?

The turnover rate is a measure of how many employees leave a company in a given period, expressed as a percentage of the total workforce. It helps organizations understand employee retention and identify potential HR issues.

2. How Does the Calculator Work?

The calculator uses the turnover rate formula:

Where:

• Separations — Number of employees who left during the period
• Total Employees — Average number of employees during the period

Explanation: The formula calculates what percentage of the workforce left during a specific time period.

3. Importance of Turnover Rate

Details: Turnover rate is a key HR metric that impacts organizational costs, productivity, and culture. High turnover may indicate problems with job satisfaction, compensation, or management.

4. Using the Calculator

Tips: Enter the number of employees who left (separations) and the average number of employees during the period. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's a good turnover rate?
A: Ideal rates vary by industry. Generally, 10% or less is good, while over 20% may indicate problems.

Q2: Should voluntary and involuntary turnover be separated?
A: Yes, analyzing them separately provides better insights into different HR challenges.

Q3: What time period should be used?
A: Typically calculated annually, but can be done quarterly for more frequent monitoring.

Q4: How does turnover impact business?
A: High turnover increases recruitment/training costs and can reduce productivity and morale.

Q5: What reduces turnover?
A: Competitive compensation, career development, good management, and positive work environment.