1. What is Turnover Rate?

The turnover rate measures how many employees leave a company during a specific period relative to the average number of employees. It's a key HR metric for understanding employee retention and organizational health.

2. How Does the Calculator Work?

The calculator uses the standard turnover rate formula:

Where:

• Number of Leavers — Employees who left during the period
• Average Number of Staff — (Starting staff + Ending staff)/2 or monthly average

Explanation: The formula calculates the percentage of employees who left compared to the average workforce size.

3. Importance of Turnover Rate

Details: Turnover rate helps organizations assess retention problems, calculate hiring needs, and estimate costs associated with employee departures and replacements.

4. Using the Calculator

Tips: Enter the total number of employees who left during the period and the average number of staff during that same period. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's a good turnover rate?
A: Varies by industry, but generally 10-15% is average. Lower is better for most organizations.

Q2: Should voluntary and involuntary turnover be separated?
A: Yes, for deeper analysis. Voluntary turnover (resignations) often indicates different issues than involuntary (terminations).

Q3: What time period should be used?
A: Typically annual, but can be quarterly or monthly depending on analysis needs.

Q4: How does turnover rate differ from attrition rate?
A: Turnover includes all departures, while attrition typically refers only to positions that aren't refilled.

Q5: What are common causes of high turnover?
A: Poor management, lack of growth opportunities, inadequate compensation, or poor cultural fit.