What is the employee turnover rate?

Employee turnover rate is a key indicator of a company's performance. It refers to the percentage of employees who leave the organization during a particular period of time, say one month.

Employees may leave due to resignations, terminations or retirements. The total employees at the starting of the month (A), the employees at the end of the month (B), and the number of employees left during the month (X) are taken into account to get the average employee turnover rate.

  • Avg = (A+B)/2 -- adding both A and B divided by 2 gives you average employees of that month.

  • Divide the number of employees left (X) by the Avg and multiply by 100 to get the turnover rate.

Employee turnover rate = {(X/Avg)*100}

Updated on: 04-May-2022


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