HR Glossary / Employee Turnover

Employee turnover, or employee turnover rate, is an indicator representing the percentage of employees who leave an organization within a time period of reference.

How to Calculate Employee Turnover?

The employee turnover rate is calculated by first dividing the number of employees who have left during a reference period by the total number of employees who have worked for the organization during the same time frame (number of employees currently working + number of employees who have left). The result is then multiplied by 100 to obtain the rate:

Number of employees lost during the period ÷ (Total of employees + Employees lost) × 100

For example, a company has 25 employees at the beginning of the year of reference. During the year, 5 new employees join the team, but 3 leave. The employee turnover rate is therefore 10% (3 ÷ (25 + 5) × 100 = 10).

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