Calculate employee turnover rate for a given period.
Turnover rate divides the number of employees who left during a period by the average number of employees during that same period, expressed as a percentage: rate = separations ÷ average headcount × 100.
Average headcount (rather than a single point-in-time count) smooths out the effect of hiring and departures happening throughout the period, giving a more representative denominator than a single snapshot.
Turnover is usually tracked annually for external benchmarking, but can be calculated for any period — monthly or quarterly tracking often catches problems faster than waiting for a full year's number.
12 employees leaving during a period with an average headcount of 150 gives a turnover rate of 8%.
It varies enormously by industry — retail and food service often see turnover well above 50% annually, while stable professional roles might target under 10%. Compare against your specific industry's benchmarks, not a universal number.
Many organizations track them separately, since voluntary turnover (people choosing to leave) and involuntary turnover (layoffs, terminations) usually signal very different things about the organization.
A common simple method: add the headcount at the start and end of the period, then divide by 2. More precise methods average headcount across each month within the period.