{"id":7506,"date":"2026-09-03T09:48:11","date_gmt":"2026-09-03T09:48:11","guid":{"rendered":"https:\/\/bizedgeapp.com\/blog\/?p=7506"},"modified":"2026-09-03T10:02:11","modified_gmt":"2026-09-03T10:02:11","slug":"how-to-calculate-employee-turnover-rate-a-comprehensive-guide","status":"publish","type":"post","link":"https:\/\/bizedgeapp.com\/blog\/how-to-calculate-employee-turnover-rate-a-comprehensive-guide","title":{"rendered":"How to Calculate Employee Turnover Rate: A Comprehensive Guide\u00a0"},"content":{"rendered":"\t\t
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How to Calculate Employee Turnover Rate: A Comprehensive Guide <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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Table of Contents<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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1. What is Employee Turnover Rate?<\/a><\/p>

2. Why Calculating Employee Turnover Rate is Important<\/a><\/p>

3. Track Turnover by Department<\/a><\/p>

4. What is a Good Employee Turnover Rate<\/a><\/p>

5. When is Turnover a Concern?<\/a><\/p>

6. How Employee Turnover Affects the Business<\/a><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Employee turnover<\/span><\/a> is one of those HR metrics that can tell you a lot about what is happening within your workforce.\u00a0<\/span><\/p>

You may know how many employees left your company during the year. However, that number alone does not tell you much. A company with 20 employees that loses five people has a very different turnover situation from a company with 500 employees that loses the same five people.<\/span><\/p>

Employee turnover rate shows the proportion of employees who leave an organisation during a specific period compared with the average number of employees during that period.<\/span><\/p>

More importantly, the number can help HR identify workforce trends, investigate <\/span>retention<\/span><\/a> problems and make better decisions about recruitment and workforce planning.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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What is Employee Turnover Rate?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Employee turnover rate is the percentage of employees who leave an organisation during a specific period.<\/span><\/p>

An employee may leave voluntarily by resigning, or the employer may initiate the separation through dismissal, redundancy or another form of involuntary exit.<\/span><\/p>

Therefore, employee turnover can include different types of employee exits depending on how the organisation defines and reports the metric. If your HR team includes resignations, dismissals and redundancies in one <\/span>turnover<\/span><\/a> calculation, continue using that definition when comparing periods.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Why Calculating Employee Turnover Rate is Important<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Employee turnover rate is necessary because employee exits affect more than headcount.<\/span><\/p>

When an employee leaves, the organisation may need to advertise the role, interview candidates, conduct <\/span>background checks<\/span><\/a>, onboard a replacement and spend time helping the new employee become productive.<\/span><\/p>

At the same time, the departing employee may take institutional knowledge with them. Therefore, a consistently high turnover rate can put pressure on recruitment, managers, productivity and operating costs.<\/span><\/p>

However, HR should not assume that every employee departure is a problem. Some turnover is normal. Employees retire, change careers, relocate, move into different roles or leave for reasons outside the employer’s control.<\/span><\/p>

The employee turnover rate formula is:<\/span><\/p>

Employee Turnover Rate = Number of Employees Who Left During the Period \u00f7 Average Number of Employees During the Period \u00d7 100<\/span><\/p>

To calculate the average number of employees, use this formula:<\/span><\/p>

Average Number of Employees = Beginning Headcount + Ending Headcount \u00f7 2<\/span><\/p>

Example<\/span><\/p>

Find out the turnover rate of a company that had 120 employees at the beginning of the year. During the year, 30 employees left. By the end of the year, the company had 140 employees.\u00a0<\/span><\/p>

Find out the turnover rate of a company that had 120 employees at the beginning of the year. During the year, 30 employees left. By the end of the year, the company had 140 employees.<\/span><\/p>

Answer<\/span><\/p>

First, calculate the average headcount:<\/span>
<\/span>Beginning Headcount = 120<\/span>
<\/span>Ending Headcount = 140<\/span><\/p>

Average Number of Employees = Beginning Headcount + Ending Headcount \u00f7 2<\/span>
<\/span>Average Number of Employees = 120 + 140 \u00f7 2 <\/span>
<\/span>Average Number of Employees = 130<\/span><\/p>

Next, divide the number of employees who left by the average headcount:<\/span>
<\/span>Employee Turnover Rate = Number of Employees Who Left During the Period \u00f7 Average Number of Employees During the Period \u00d7 100<\/span><\/p>

Employee Turnover Rate = 30 \u00f7 130 \u00d7 100 <\/span>
<\/span>Employee Turnover Rate = 23.1%<\/span><\/p>

Therefore, the company’s annual employee turnover rate was approximately 23.1%. This number tells you how much employee movement occurred. However, it does not tell you why people left. <\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Track Turnover by Department<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Overall company turnover can hide problems in individual teams. For example, a company might have an overall turnover rate of 10%, while one department has a turnover rate of 28%.<\/span><\/p>

HR can compare turnover across:<\/span><\/p>