Employee turnover calculator
Calculate the employee turnover rate from the number of leavers and the average headcount.
Calculate the employee turnover rate from the number of leavers and the average headcount.
Turnover rate = leavers ÷ average headcount × 100. Average headcount is usually headcount at the start plus headcount at the end, divided by two.
Eight leavers from an average team of 80 is 10%. The rate is only as good as the leaver count. Decide first whether retirements, the end of a fixed term, and people who left in their first month are in that count, then use the same rule every period. A higher rate is not automatically a problem in a seasonal business. Compare it with your own earlier periods.
8 ÷ 80 × 100.
10%
8 ÷ 40 × 100.
20%
Anyone you decided to include before you opened the spreadsheet. Write the rule down. Moving someone between your own companies is often excluded. A dismissal is often included. Changing the rule between quarters makes the trend meaningless.
Turnover divides leavers by the average team. Retention divides the people who stayed by the team you started with. They are related and they are not mirrors, because the average team includes people who joined during the period.
The period the leavers belong to. A monthly rate will look about a twelfth of the annual rate if leavers are steady. Do not compare a month with a year without saying so.
Average headcount is usually the start plus the end, divided by two.