How to Calculate Employee Turnover Rate – Forbes Advisor

Before you start with the calculations of the employee turnover rate, you must decide the period for which you want to calculate. It can be monthly, quarterly or yearly.

Here’s how to calculate your employee turnover rate in three easy steps:

Step 1. Gather the necessary information

To calculate employee turnover, you’ll need to collect three pieces of information. First, the number of employees your organization had at the beginning of the time period (for example, year). Second, the number of employees your organization had at the end of the time period. And third, the number of employees who left your organization during that time period.

To calculate the churn rate, you need these three pieces of information:

  • Number of employees at the beginning of the period
  • Number of employees at the end of the period
  • Total number of employees who left during that period

Once you have collected this information, continue to the next step.

Step 2. Calculate the Average Number of Employees

To calculate the employee turnover rate, you must first calculate the average number of employees. To do this, add your number of employees at the beginning of the time period (eg, the beginning of the year) to the number of employees at the end of the time period (eg, the end of the year).

Here is the formula to calculate your average number of employees:

Average # of employees = [(number of employees at the beginning + number of employees at the end)/2]

For example, let’s say your organization had 42 employees at the beginning of the year and 62 at the end of the year. And 13 employees left during the same period. To calculate your average number of employees, simply add 42 and 62, then divide the total by two.

average number of employees = 62+42/2 = 52

Step 3. Calculate the Percent Turnover Rate

Next, use your average number of employees to calculate your turnover rate. To do this, divide the number of employees who left by your average number of employees. Then multiply that answer by 100 to get your turnover rate percentage.

This is the formula to calculate the percentage of the turnover rate:
Annual billing = [(number of employees who left/average number of employees)*100]

Following the same example, divide 13 (the number of employees who left within the time period) by 52 (the average number of employees), then multiply that number by 100 to get an employee turnover rate of 25%.

annual turnover % = 13/52*100 = 25%

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