Turnover Rate Calculator

The turnover rate is the rate in which employees are leaving your company. If a company has a high turnover rate, then it shows that a company goes through a lot of staff fast.

A successful company will have a reasonable turnover rate which makes sure that the company gets a fair share of new skills and insight from a variety of people.

Edit both the True Turnover Rate, and the Net Turnover Rate below.

Voluntarily Termination: This is when an employee has submitted their resignation to their employer.

Disciplinary Termination: This is when an employee's contract has been terminated because of either them breaching the contracts terms, or taking part in inappropriate conduct.

Unavoidable Termination: This is when an employee has left the employment of their employee because of a reason which is unavoidable. This includes disabilities and retirement.

What is The Turnover Rate?

The turnover rate is the rate that employees are leaving your company. If a company has a very high turnover rate, it means that they go through a high amount of staff in a short period of time. High turnover rates can be associated with:

• - Staff being poorly trained.
• - Staff being paid badly.
• - Staff having bad working conditions.
• - The workplace being stressful.
• - Bullying in the workplace.
• - Cultural issues, such as group exclusion.
• - Poor recruitment process which has resulted in employment of an unsuitable employee.
• - Misleading job descriptions.
• - Workplace location issues.
• - Dangerous work environment.
• - Competitors offering employees better benefits.
• - Better opportunities among the job market.

Similarly, if a company has a low turnover rate, then it can be associated with reasons the opposite of above. Any successful company will have a reasonable turnover rate to make sure that a variety of skills are being provided to the company to keep the company's processes open to having more insight from individuals.

Successful companies will observe their turnover rate on a regular basis and take advantage of doing so, using it to identify any problems that may be causing issues in their company. Any productivity issues that are followed up by a rise in the turnover rate, usually indicates that there are issues with the morale in the workplace. A happy employee is a productive employee!

Net Turnover Rate V's True Turnover Rate

When it comes to the Turnover Rate, it can be split into two parts to allow whoever is reviewing the rates to ignore any unavoidable losses and focus on the important figures. These two parts are called the Net Turnover Rate, and the True Turnover Rate.

• The Net Turnover Rate: is the rate that is calculated and includes all of the staff who have left employment of the company. The reasoning behind them leaving is not taken into consideration and all numbers are taken into a count.
• The True Turnover Rate: is the rate that is calculated and excludes any of the unavoidable terminations described above, such as retirement or disability.

The Analysis and Interpretation of the Turnover Rate Figures

The key factions which should be taken into consideration when looking at the turnover rates are shown above. If you are concerned due to having a high turnover rate, then it's important that you look at the statistics which surround your employees. A lot of companies work towards a high turnover rate, as it can result in them saving employment costs. When investigating, you should look into asking the questions below and as you continue to investigate you'll begin to notice a pattern and will have the chance to fix the issues.

• The staff that have been leaving your company, are they from the same department or similar departments?
• Are all of the staff that have been leaving a specific race, ethnicity or gender?
• Is your turnover rate similar constantly, or was it a short term issue?
• Has your turnover rate suddenly increased? If so this may be due to a policy change or due to a change in management.
• Is your turnover rate similar to other companies in your industry?
• Have you been performing an exit interview with those who are leaving?

The final point is the most important. By interviewing employees who have decided to leave you are able to define the reasons they are leaving and pinpoint any issues that there may be among your staff.

Turnover Rate Formula

True Turnover Rate (TTR) = TNE / (VT + DT).

Net Turnover Rate (NTR) = TNE / (VT + DT + UT).

• NTR: Net Turnover Rate
• TTR: True Turnover Rate
• TNE: Total Number of Employees
• VT: Voluntarily Termination
• DT: Disciplinary Termination
• UT: Unavoidable Termination

You may also like to try our Overtime Calculator or / and Holiday Entitlement Calculator