HR Metrics
Employee Turnover Rate
Employee turnover rate measures the proportion of employees who leave an organization during a defined period.
Turnover rate formula
Turnover Rate = Employees who left ÷ Average number of employees × 100
If 12 employees leave during a year and the organization's average headcount is 150, the turnover rate is 8%.
What counts as turnover?
Definitions vary. Some organizations include all separations; others analyze voluntary and involuntary turnover separately. Consistency matters when comparing periods or business units.
Is a lower turnover rate always better?
No. Some turnover is normal and can even be healthy. Interpretation depends on role, labor market, growth stage, performance, tenure, location, and the reasons people are leaving.