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Turnover rate calculation
Average number of employees
Number of employees who left
Turnover rate
%

If you need to calculate your company's employee turnover rate quickly, you're in the right place - our turnover rate calculator will do it for you. Use it to figure out the value of this important HR metric, and read on if you want to find out more about it. In the article, we will describe how to calculate turnover rate, explain what is turnover rate in the first place, and show you the turnover rate formula.

What is turnover rate, and what does it tell you?

Let's start from the beginning. Turnover rate is a metric used by Human Resource (HR), used to monitor the value of various HR initiatives undertaken by a company. Turnover is, in essence, the act of replacing one employee with another. Employee turnover rate is a metric that tells you the percentage of staff members who left the company over a period of time. It's typically calculated on a monthly or yearly basis, but, in practice, you can use whatever frequency fits you best.

Importantly, when calculating employee turnover rate, you usually don't take into account inter-company movement - the metric concerns members of staff who leave the company for good, so promotions and transfers should not be counted. Similarly, if an employee starts a long-term but temporary leave, for example maternity leave or a sabbatical, they should not be counted, as they don't truly leave the company. When calculating staff turnover rate, the workers who leave are those who resign, retire, or are laid off.

So, why is it important? In simplest terms - you most likely don't want your staff to leave the company in groups. The employee turnover rate allows us to assess the state of a company from the team's perspective, and act when something starts going wrong.

As for the specific values of the employee turnover rate, it's not really possible to specify when it universally gets bad. The values vary from industry to industry. According to LinkedIn's 2017 analysis, these are the turnover rates for some sectors (ranked highest to lowest):

Sector TR
Tech (software) 13.2%
Retail 13%
Media & entertainment 11.4%
Goverment/Edu/Non-profit 11.2%
Financial services & insurance 10.8%
Healthcare & pharmaceutical 9.4%

How to use the turnover rate calculator?

To calculate your company's turnover rate, follow these short instructions:

  1. Pick whether you need to calculate the average number of active team members.
    • If you already know the average number, input it into the appropriate field.
    • If you are yet to calculate the average number of employees, the employee turnover rate calculator can do it for you. In that case, input the number of active employees your company had at the beginning of the given period, and the number at the end of that period.
  2. Input the number of employees who left over the given time period.
  3. The calculator will use the provided information to figure out the turnover rate.

How to calculate turnover rate?

Now that you know what is turnover rate, so let's move on and learn how to calculate it. Luckily, the turnover rate formula is an easy one, so calculating it on your own should not be too complicated.

If you want to do the calculations yourself, use the following turnover rate formula:

turnover rate = (employees who left / average number of employees) * 100%

If we want to calculate the average number of staff members at the same time, the turnover rate formula becomes a little bit more complicated:

turnover rate = [employees who left / ((employees at the beginning of given period + employees at the end of given period) / 2)] * 100%

Now that you know how to calculate turnover rate, let's go through a short example. Let's say over the last year 9 people left a company, which had an average of 91 employees over that time. In that case:

TR = (9 / 91) * 100 = 0.989 * 100% = 9.89%

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Maria Kluziak