Annual employee turnover rate (%) calculator
The Employee Turnover Rate Calculator is a tool designed to help businesses and HR professionals measure the rate at which employees leave an organization over a specific period, typically annually.
This metric is crucial for understanding workforce stability, identifying potential issues in retention, and gauging the overall health of an organization’s employee management practices.
Improve employee engagement rate with our:
Employee Turnover Rate Calculator
The formula used to calculate the employee turnover rate is:
Annual Turnover Rate % = (Number of Employees Who Left / Average Number of Employees) × 100
Where,
- “Number of Employees Who Left” is the total number of employees who departed during the period.
- “Average Number of Employees” is calculated as (Number of Employees at Start + Number of Employees at End) / 2
Annual employee turnover rate calculation example
- Number of Employees at Start of Year: 100
- Number of Employees at End of Year: 95
- Number of Employees Who Left During the Year: 10
- Calculate the Average Number of Employees: Average = (100 + 95) / 2 = 97.5
- Apply the Turnover Rate Formula: Turnover Rate = (10 / 97.5) × 100 = 10.26%
Result: The annual employee turnover rate for this example is 10.26%.
In this example, a turnover rate of 10.26% means that approximately 10% of the average workforce left the company during the year.
Whether this rate is considered high or low depends on the industry standards and the specific context of the organization.
Generally:
- A low turnover rate (e.g., below 10%) might indicate good employee satisfaction and retention.
- A high turnover rate (e.g., above 20%) could suggest potential issues with employee engagement, compensation, or work environment that may need addressing.
Some industries naturally have higher turnover rates than others, and factors like company growth or restructuring can significantly impact this metric.
