Employee turnover or employee turnover rate is the measurement of the number of employees who leave an organization during a specified time period, typically one year.
According to a Gallup workforce panel study, 51% of employees are actively looking for a new job at any given time.
How can you calculate employee turnover?
To calculate the monthly employee turnover rate, all you need is three numbers: the numbers of active employees at the beginning (B) and end (E) of the month and the number of employees who left (L) during that month. You can get your average (Avg) number of employees by adding your beginning and ending workforce and dividing by two (Avg = [B+E]/2).
Now, you should divide the number of employees who left by your average number of employees. Multiply by 100 to get your final turnover percentage ([L/Avg] x 100).
Monthly turnover %= Employer separated / average number of employee X 100
Annual Turnover rate % = Number of employee who left / (Beginning + ending number of employees /2 ) X 100
So, if you have 45 employees at the start of the year and 55 at the end and 5 employees left during that year, your annual turnover rate would be:
Annual Turnover rate %= 5/ (45+55 / 2) * 100= 10%
Causes of employee turnover
People join and leave companies this isn’t new. There are many reasons why someone could leave your organization. Some reasons are nothing to be concerned about as they are largely unavoidable. However, it you workers are leaving due to unhappiness at work, or you are constantly finding yourself firing underperforming employees, you have a problem.
Main cause of employee turnover
