Turnover Rate Calculator
Turnover rate is a foundational statistic in understanding an organization’s overall health. It allows you to get a clear picture of your company culture, how successful your recruitment efforts are, and your overall brand perception. Knowing this metric is the first step in improving employee retention.
Use our free calculator below to find your turnover rate today.
What Is Turnover Rate?
turnover rate | ˈtərn-ˌō-vər – ˈrāt | noun – percentage of employees who left a company over a certain period of time.
When you hear “turnover rate,” the first image that may come to mind is of a frumpy, now ex-employee, with droopy shoulders, greasy hair and smells a bit like when your kids got back in the car on your ride home from Chuck E. Cheese, sweaty pizza… Well you’re not alone.
Most people typically associate turnover rate to employee turnover, which measures the number of employees that left an organization from the beginning of a set period until a determined end point.
Knowing this metric is a significant step in understanding the overall health of your organization. It’s square one in the process of improving your company’s culture which contributes to your employee retention rates. The better your retention rates are, the more likely it is that your company culture is something to be proud of.
So how do you find your employee turnover rate? Are there different types of turnover?
Types of Turnover
There are really two main types of turnover when talking about employee turnover rates. The first is voluntary turnover, which is when an employee chooses to leave the company. The second is involuntary turnover, which happens when an employee is terminated by the employer. Some employers view this as good turnover versus bad turnover.
The average turnover rate in 2019 for North America was 22%, out of which:
- Voluntary turnover accounts for 15%,
- Involuntary turnover accounts for 6%
Involuntary turnover occurs when an employee becomes a productivity distraction, is inconsistent in performance, no longer aligns with the organization’s core values, and the list goes on and on. I’m sure you know what an involuntary turnover looks like…
Voluntary turnover is when an employee decides to walk away, all on their own. This is where the really valuable data lies for your organization. You’ll eventually need to understand why it happens, but first, you need to know how often it’s happening.
Turnover Rate Best Practices
Consistently measuring and tracking turnover is crucial for understanding your organization’s overall health and culture because when you have a high turnover rate, it can be extremely costly. It also negatively impacts your brand and makes it much harder to fill roles if you have a poor workplace rapport. This ultimately increases the amount of investment you’ll need to have for your recruiting resources in order to attract strong candidates and will ultimately inflate your cost-per-hire. Which, well, you know, isn’t a good thing…
Before your cost-per-hire gets out of control, there are a few things you must keep track of and have a handle on to keep that from happening. You need to know your turnover rate, the costs associated, and then budget for turnover while you chip away at improving your employee turnover rate. Let’s not get too far ahead of ourselves though.
You first need to start with knowing your turnover rate, which is why we’ve made it super easy to find that crucial number with our convenient turnover rate calculator above that we hope you take advantage of.
Now that you have a better understanding of your employee turnover rate, you’re one step closer to improving employee retention. The next step in the process is finding the costs associated with turnover by using our Cost of Turnover Calculator.
How Much Is Turnover Costing Your Organization? (Free Calculator)
The cost of employee turnover is more than the amount of replacing the lost working body. Find out how much it’s costing your organization on an annual basis.