How to Calculate Employee Turnover
What is Employee Turnover?
Calculates the percentage of employees leaving during a period and associated replacement costs. High turnover indicates cultural or compensation issues.
Step-by-Step Guide
- 1Count employees who left during period
- 2Calculate average headcount
- 3Divide: departures ÷ avg headcount × 100%
- 4Calculate replacement costs (recruitment, training)
Worked Examples
Input
Cat age 3 years
Result
28 human years
Common Mistakes to Avoid
- ✕Only counting voluntary departures, ignoring terminations
- ✕Underestimating training and ramp-up time costs
Frequently Asked Questions
What's healthy employee turnover?
Industry average 12-15% annually; below 10% indicates strong retention, above 20% signals problems.
What's the cost of replacing an employee?
Typically 50-200% of salary; includes recruitment, training, lost productivity, and knowledge loss.
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