Employee Turnover Rate
The percentage of employees who leave the organization (voluntary + involuntary) during a period.
“Are we retaining our workforce, or losing people faster than expected?”
The overall rate of workforce attrition and whether it's trending above healthy norms.
Whether the departures are regrettable (high performers leaving) or healthy attrition — always segment by performance rating and voluntary/involuntary.
Numerator
Employees Who Left during the period
Denominator
Average Headcount during the period
Example
18 employees leave out of an average headcount of 450 in a quarter. Turnover Rate = 18 / 450 = 4%.
Recommended visualization: Stacked bar: voluntary vs. involuntary turnover, by department
Annualize monthly turnover consistently (monthly rate × 12, not simple sum) to allow fair comparison to industry benchmarks.
- Confirm termination reason codes are captured consistently across managers
- Exclude planned reductions-in-force from 'regrettable' turnover reporting, tag separately
- Reporting blended turnover without separating voluntary/regrettable attrition from involuntary/RIF-driven attrition
- Using simple monthly-sum annualization, which overstates true annual turnover
Get a conversational, stakeholder-friendly explanation of this KPI, generated on demand.