Employee Turnover Calculator (Free Tool + Guide)

What is Turnover Rate?

Your employee turnover rate refers to the percentage of active employees who leave an organization during a certain period. The lower your rate, the healthier your organization is.

You can calculate your staff turnover rate by dividing the number of employees who leave (voluntarily or involuntarily) by the average number of total employees during the same period, and then multiplying that figure by 100 to get a percentage.

Why Does Turnover Rate Matter?

There are several reasons why turnover rate matters for businesses and organizations:

Cost Implications — A company's employee turnover rate can be costly for organizations if it's high. The turnover costs of recruiting new hires, training, and the ramp-up time for new employees to become productive can significantly impact an organization's finances.
Reputation — Organizations with high turnover rates may find it difficult to attract and retain top talent. Potential employees may view high turnover as a red flag and a sign of potential problems within the organization, such as poor management, inadequate compensation, or a toxic work environment.
Employee Morale — High turnover can affect the morale of remaining employees. It can lead to increased workloads, stress, and uncertainty about job security. This, in turn, can decrease job satisfaction and employee engagement, potentially leading to even higher turnover.
Knowledge and Experience Loss — When employees leave, they take with them valuable knowledge and experience. This can be particularly damaging if those employees are in key positions or have unique skills that are not easily replaced.
Productivity — Frequent changes in staff can create lost productivity the workflow and decrease overall productivity. The time it takes to hire and train new employees means that less time is spent on productive work, which can affect the organization's output and quality of work.
Customer Satisfaction — Turnover can have a direct effect on customer satisfaction if your old clients have to face new staff all the time. Onboarding and training can also slow down your operations, which could also have negative effects on your overall customer happiness.

The Painful Reality of Employee Turnover

The cost of replacing an employee ranges from 10-30% of their annual salary.

A 100-person company could end up spending up to $2.6 million a year on turnover costs.

Some 66% of workers have accepted a job and realized it was a bad fit.

Up to 26% of employees say that they hate going into work every day.

Frequently Asked Questions

How do you calculate employee turnover?

Here's the employee turnover rate formula:

Turnover Rate = (Number of Separations / Average Number of Employees) × 100

What is a good turnover rate?

You definitely want a low turnover rate, but what does that figure look like? That can depend on the industry you're in. However, a turnover rate of 10% or lower is often considered good.

Avoid Employee Turnover by Engaging Your Team

If you want to improve retention and lower your turnover rate, use a tool to improve your employee engagement rates. That's where Quizbreaker comes in. Our tool helps improve team culture, engagement, connection, and camaraderie so you retain more staff. Here's how our platform does that.