How to Calculate Employee Turnover Rates

Written by james collins
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How to Calculate Employee Turnover Rates
Use the number of employees at the midpoint for the month. (Jupiterimages/Comstock/Getty Images)

Labor and human resources are usually one of the highest costs for any organisation. Good employees can mean the difference between sales growth or decline, so it's important to acknowledge employee contribution and focus on employee retention. The first thing human resources can focus on is the employee turnover rate, which is calculated by dividing the number of employees leaving the company by the number of employees mid-month, which is the average of inventory at the beginning and end of the month.

Skill level:
Moderately Easy

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Instructions

  1. 1

    Identify the number of employees at the end of the month and the beginning of the month.

  2. 2

    Sum the number of employees from the beginning and end of the month and divide by two for an average midpoint. For example, if there are 50 employees in the beginning of the month and 70 employees at the end of the month, the average midpoint is 60.

  3. 3

    Identify the number of employees that left the organisation within the month. Let's say that 10 people left to pursue other opportunities.

  4. 4

    Calculate the employee turnover rate. Divide the number of employees that left the company during the month by the number of employees at the midpoint. The calculation is 10 divided by 60, or 60 per cent.

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