Written by Brett Rudy
May 3, 2019
Are you looking to calculate annual turnover rate for your company? It’s easier than you think once you know the annual turnover rate formula.
In the article, the follow questions will be answered:
According to the Salary.com 2018 Turnover Report, company turnover has been on a steady rise, peaking at 19.3% this past year. This is illustrative of a hot job market.
If you want to determine how turnover in your organization compares to average turnover rates in your industry and region, first you need to know how to calculate it.
Calculate your annual turnover rate by dividing the number of employees who left your company this year by the total number of employees you had at the beginning of the year. Then show the number as a percentage.
Here is an example of how to calculate total turnover rate:
Considering the average turnover is 19.3%, in this example you would have had turnover 3.3 points, or 17.1% lower than average (3.3 points divided by 19.3 average turnover).
Using the same math as above, you can calculate annual turnover rate for:
Voluntary turnover rate plus involuntary turnover rate will always equal total turnover rate.
And abracadabra. You’ve figured out the trick.
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