Employee Turnover Rate Calculator
Calculate workforce turnover and retention metrics
Turnover Formulas
Understanding Employee Turnover
Employee turnover rate measures the percentage of employees who leave an organization during a period. It's calculated by dividing separations by average employee count. A company with 100 employees averaging 10 departures has 10% turnover.
Turnover includes both voluntary (resignations) and involuntary (terminations) separations. Many organizations track these separately since they have different causes and remedies. High voluntary turnover often signals culture or compensation issues.
The cost of turnover is substantial—typically 50-200% of annual salary including recruiting, training, lost productivity, and institutional knowledge loss. Reducing turnover is often one of the highest-ROI HR investments.
Turnover Rate Benchmarks
Below 10%
Excellent retention. Common in stable industries with strong culture.
10-15%
Healthy range. Normal for professional services and tech.
15-25%
Elevated. May indicate issues or be industry-normal (retail, hospitality).
Above 25%
High turnover. Significant cost impact. Investigate root causes.
Turnover by Industry
| Industry | Avg Turnover | Voluntary % | Notes |
|---|---|---|---|
| Technology | 13-15% | 10-12% | Hot market competition |
| Retail | 60-70% | 50-55% | High hourly turnover |
| Healthcare | 17-20% | 12-15% | Burnout factor |
| Finance | 12-15% | 8-10% | Varies by role |
| Manufacturing | 15-20% | 12-15% | Shift work challenges |
Reducing Turnover
Competitive Compensation
Benchmark pay annually. Being below market is the #1 reason people leave for competitors.
Career Development
Clear growth paths and learning opportunities. People leave when they feel stuck.
Manager Quality
People leave managers, not companies. Invest in leadership training and hold managers accountable.
Exit Interviews
Track why people leave. Look for patterns and address systemic issues, not just symptoms.
Frequently Asked Questions
What's included in turnover cost?
Direct costs: recruiting, advertising, interviewing time, onboarding, training. Indirect costs: lost productivity, knowledge loss, team disruption, overtime to cover gaps. Total typically runs 50-200% of annual salary.
Should I track voluntary vs involuntary separately?
Yes. Voluntary turnover indicates engagement and competitiveness issues. Involuntary turnover reflects hiring quality and performance management. They require different interventions.
How do I calculate average employees?
Add beginning headcount and ending headcount, divide by 2. For more accuracy, average monthly headcounts. This smooths out seasonal or hiring-wave fluctuations.
What's regrettable vs non-regrettable turnover?
Regrettable: losing high performers you wanted to keep. Non-regrettable: poor performers or planned separations. Track regrettable turnover separately—it's the real problem indicator.
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