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).