How to Calculate Turnover Rate Percentage

High turnover rates create an inexperienced workforce and many additional expenses for a company. Hiring and training costs are obvious, but an inexperienced workforce tends to work less efficiently and make more mistakes, which also raises costs. What a company considers "high" for a turnover rate will vary depending on the size of the company and the nature of the work.

Instructions

1. Determine the time frame you want to use for your calculation of the turnover rate. Sometimes, monthly turnover can have more meaning than long-term turnover.

2. Determine the average number of employees working during the time frame. If you have a fixed number of positions, it may be easier to calculate the average number of vacancies and subtract that from the total number of positions to determine the turnover rate.

3. Determine how many people left the company over the course of the time frame. It might be useful to divide this number into two groups: those who left voluntarily and those who left involuntarily.

4. Divide the total number of people who left in the time frame by the average number of total employees over the same time frame. This results in a decimal number. Multiply by 100 to get a percentage value. For example, if you had a total of 100 employees on average and a total of 20 employees who left:

   turnover = 20/100 = 0.2 * 100 = 20 percent turnover rate.

5. Use the same formula to determine other turnover rates. For instance, if you had 15 people who left voluntarily: voluntary turnover rate = 15/100 = 0.15 * 100 = 15 percent turnover rate.

References

• WorkForce1: High Cost of Employee Turnover

Resources

• Read this Article in Spanish
• MissouriBusiness.net: Reducing Employee Turnover
• Wall Street Journal: How to Reduce Employee Turnover