Analytics · HR glossary

Turnover Rate

Turnover rate measures employee departures relative to the workforce during a specified period. A common formula divides departures by average headcount and multiplies the result by 100.

Example

If eight employees leave during a year and average headcount is 100, the annual turnover rate is 8%. The same calculation can cover selected departure types.

What to keep in mind

State the period, departure categories and average-headcount method. A quarterly rate should not be compared directly with an annual rate, and simple annualisation may misrepresent seasonal patterns.

Put it into practice

Employee turnover calculator

A worked model of employee turnover costs

Further reading

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