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Turnover Rate Formula:
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The Company Turnover Rate measures the percentage of employees who leave an organization during a specific period. It's a key HR metric that helps assess employee retention, workplace satisfaction, and organizational stability.
The calculator uses the turnover rate formula:
Where:
Explanation: The formula calculates what percentage of the workforce left the company, providing insight into employee retention and organizational health.
Details: Tracking turnover rate helps identify potential issues in company culture, management practices, compensation, and employee satisfaction. High turnover can indicate problems that need addressing, while low turnover suggests good employee retention.
Tips: Enter the number of employees terminated during the period and the average number of employees for the same period. Both values must be positive numbers, with average employees greater than zero.
Q1: What is considered a good turnover rate?
A: Industry standards vary, but generally 10-15% is considered normal. Rates above 20% may indicate retention problems, while rates below 5% might suggest stagnation.
Q2: How do I calculate average employees?
A: Add the number of employees at the beginning and end of the period, then divide by 2. For more accuracy, use monthly averages.
Q3: Should voluntary and involuntary turnover be separated?
A: Yes, analyzing voluntary resignations separately from terminations can provide more specific insights into different aspects of workforce management.
Q4: What time period should I use for calculation?
A: Typically calculated annually, but can be done quarterly or monthly for more frequent monitoring and trend analysis.
Q5: How does turnover rate affect company costs?
A: High turnover increases costs related to recruitment, training, lost productivity, and decreased morale among remaining staff.