Employee Turnover Rate

Date created: Mar 28, 2019  •   Last updated: Sep 27, 2019

What is Employee Turnover Rate?

Employee Turnover Rate is the percentage of employees who voluntarily or involuntarily leave an organization (typically calculated annually). You should consider voluntary and involuntary categories separately, in addition to looking at overall Employee Turnover Rate.

Alternate names: Turnover


ƒ Count(Employees who have left) / (Sum(beginning + ending number of employees) / 2)

How to calculate

Company total at beginning of the year = 100 Number of employees that left = 6 Company total at end of year = 94 6 / ((100 + 94) / 2) = 6.4% annual employee turnover

Employee Turnover Rate

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More about this metric

Employee turnover, as a top level metric, includes employees who leave by choice and those who are dismissed, retire, or lose their certification.

This data can prompt you to ask important questions such as who is leaving and why and whether there’s a time when more people tend to leave.

Understanding the reasons for voluntary turnover can help you improve employee engagement and retention and can shed light on your management practices and overall company culture.