Employee Turnover Rate Calculator

Number of Employees Who Left: Average Number of Employees:

Struggling to understand why employees are leaving? High employee turnover can be incredibly costly, impacting everything from team morale to your bottom line. The first step in solving the problem is to measure it accurately. Our free Employee Turnover Rate Calculator provides a simple, instant way to quantify your staff turnover, empowering you with the data you need to build a stronger, more stable workforce.

What is Employee Turnover?

Employee turnover, often called staff turnover or employee attrition, is the rate at which employees leave a company—voluntarily or involuntarily—over a specific period. It’s a critical Human Resources (HR) metric used to gauge employee satisfaction, company culture, and overall organizational health.

Voluntary Turnover: Occurs when an employee chooses to leave the organization for reasons like a better job offer, career change, or personal reasons.
Involuntary Turnover: Occurs when the employer initiates the separation, such as through layoffs, downsizing, or termination for performance issues.

Tracking this metric is the first step toward effective workforce planning and implementing powerful employee retention strategies.

How to Calculate Employee Turnover Rate: The Formula Explained

While our calculator does the work for you, understanding the employee turnover formula is essential for any HR professional or manager. The standard formula is:

Turnover Rate (%) = (Number of Separations / Average Number of Employees) x 100

Let’s break down the components:

Number of Separations: This is the total count of employees who left the company during the period you are measuring.
Average Number of Employees: This provides a more accurate baseline than just using the start or end count. You calculate it like this:
- Average Employees = (Number of Employees at Start + Number of Employees at End) / 2

Example:
If you started the year with 100 employees, ended with 120, and 15 employees left during the year:

Average Employees = (100 + 120) / 2 = 110
Turnover Rate = (15 / 110) x 100 = 13.6%

Our calculator can calculate your monthly employee turnover rate, quarterly turnover rate, or annual turnover rate.

Why is Tracking Employee Turnover So Important?

Monitoring your turnover rate isn’t just about numbers; it’s about understanding the story behind them. Here’s why it’s a crucial business practice:

Financial Impact: The cost of employee turnover is substantial. It includes recruitment costs, advertising for the role, interviewing time, onboarding and training new hires, and lost productivity.
Productivity Loss: When an employee leaves, their workload is often shifted to other team members, which can lead to burnout and decreased efficiency until a replacement is fully trained.
Impact on Morale & Culture: High turnover can create a sense of instability and anxiety among remaining staff, damaging your company culture and employee engagement.
Loss of Knowledge: When employees depart, they take valuable institutional knowledge and experience with them, which can be challenging to replace.

5 Proven Strategies to Reduce Employee Turnover

Calculating your rate is the first step. The next step is taking action. Here are effective strategies to reduce unwanted attrition:

Improve Your Hiring and Onboarding Process: Hire for cultural fit, not just skills. A structured onboarding program makes new employees feel welcome and sets them up for success from the very beginning.
Foster a Positive Company Culture: Promote open communication, recognize achievements, and encourage a healthy work-life balance. A supportive environment is a key driver of employee satisfaction.
Offer Competitive Compensation and Benefits: Regularly review salaries and benefits to ensure they align with industry standards. Fair pay demonstrates to employees that they are valued.
Provide Opportunities for Growth and Development: Employees are more likely to stay if they see a clear path for advancement within your company. Invest in training, mentorship programs, and clear career paths.
Conduct Exit Interviews: When an employee leaves, gather information on their reasons for departure. Exit interviews provide invaluable, honest feedback that you can use to identify problem areas and make meaningful improvements.

Frequently Asked Questions (FAQ)

What is the difference between employee turnover and attrition?

Turnover includes all separations (voluntary and involuntary). Attrition specifically refers to voluntary separations where the position is often not filled immediately, usually due to restructuring or downsizing. In practice, the terms are often used interchangeably, and our attrition rate calculator function is built into the main tool.

How often should I calculate my employee turnover rate?

It’s best practice to calculate it on both a monthly and annual basis. Monthly calculations help you spot short-term trends or issues quickly, while the annual turnover rate provides a broader view of your organization’s health and helps with long-term strategic planning.

Should I include temporary or part-time employees in the calculation?

It depends on your goal. For a general company-wide metric, it’s common only to include full-time, permanent employees. However, if you want to analyze turnover for your entire workforce, you can run a separate calculation that includes part-time or temporary staff. Consistency is key.

What is the real cost of high employee turnover?

Experts estimate that the cost of replacing an employee can be anywhere from 50% to 200% of their annual salary. This includes direct expenses (such as recruiting and advertising) and indirect costs (including lost productivity, training time, and the impact on team morale).

How to Use the Allsums Employee Turnover Rate Calculator

The Employee Turnover Rate Calculator is a powerful tool designed to help businesses calculate the percentage of employees leaving the company over a specific period. This metric is critical for understanding employee retention and identifying potential issues. Follow these steps to use the calculator:

Step 1: Enter Number of Employees Who Left

Input the total number of employees who left the company during the specified period in the “Number of Employees Who Left” field.
For example:
- If 15 employees resigned or were terminated in the last quarter, enter 15.

Step 2: Enter Average Number of Employees

Input the average number of employees during the same period in the “Average Number of Employees” field.
To calculate the average: $Average Number of Employees = 2 Number of Employees at Start + Number of Employees at End$
For example:
- If you started the quarter with 80 employees and ended with 90 employees, the average is (80 + 90) / 2 = 85. Enter 85.

Step 3: Calculate Turnover Rate

Click the “Calculate Turnover Rate” button to generate the result.
The calculator will display:
- Number of Employees Who Left : The total number of employees who exited.
- Average Number of Employees : The average workforce size during the period.
- Employee Turnover Rate : The percentage of employees who left.
- Feedback on whether the turnover rate is high, moderate, or low.

Understanding the Results

Turnover Rate : Indicates the percentage of employees leaving relative to the average workforce size.
Example:
- If 15 employees left and the average workforce size was 85:
  - Turnover Rate : (15 / 85) * 100 ≈ 17.65%
  - Interpretation: A 17.65% turnover rate suggests moderate turnover and may require attention.
Feedback Based on Turnover Rate :
- High (>20%) : Indicates significant retention issues. Consider addressing workplace culture, compensation, or career growth opportunities.
- Moderate (10–20%) : Suggests some turnover but within acceptable limits. Monitor trends closely to prevent escalation.
- Low (<10%) : Indicates strong employee retention. Great job maintaining a stable workforce!