The turnover rate, also known as the staff turnover rate, is an indicator that measures the percentage of employees who leave an organization within a given period of time.
To calculate the turnover rate, you can use the following formula:
Turnover rate = (Number of employees leaving the company/Average number of employees during the period) x 100
Here's how you can calculate it step by step:
1. Determine the time period for which you wish to calculate the turnover rate. This could be a year, quarter, month, or other specific time interval.
2. Calculate the number of employees leaving the company during the selected period. This includes employees who left voluntarily (resignation) and those who were laid off or terminated their contracts.
3. Calculate the average number of employees during the selected period. To do this, sum the number of employees at the beginning of the period with the number of employees at the end of the period and divide the result by 2.
4. Apply the turnover rate formula using the values obtained in the previous steps. Divide the number of employees leaving the company by the average number of employees during the selected period.
5. Multiply the result by 100 to get the value as a percentage.
For example, suppose we want to calculate the quarterly turnover rate, and during the April-June quarter, the company had 15 employees leave, while the average number of employees during the quarter was 200.
Turnover Rate = (15 / 200) x 100 = 7,5%
So, the quarterly turnover rate for the April-June period would be 7.5 percent.
Calculating the turnover rate provides an indication of employee attrition within the organization. A high turnover rate may indicate issues related to business climate, employee satisfaction, or other issues that may require attention from the company. Conversely, a low turnover rate may indicate a stable and satisfactory work environment.
Take a moment to learn more about your current Turnover Rate and chat with one of our experts to guide you in creating the best work environments for your team!
Trova la soluzione migliore per la tua organizzazione
Ascoltare e rispondere proattivamente ai bisogni delle persone è la chiave del successo della tua azienda. Con il piano Engagement di Beaconforce potrai implementare un canale di comunicazione bilaterale, tenendo sotto controllo i bisogni del tuo team ed avendo sempre visibilità in tempo reale di come si sentono le tue persone.
