Turnover Rate

A key HR metric that measures the percentage of employees who leave an organization within a specific time frame.HR professionals analyze turnover rates to identify retention challenges, improve engagement strategies, and enhance workplace satisfaction. A high turnover rate often indicates issues with work culture, compensation, or career growth opportunities.

How do you calculate turnover rate?

Turnover rate = ( Number of separations during a period / Average number of employees during that period ) × 100

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What does a 20% turnover rate mean?

A 20% turnover rate means 20% of your workforce left the organization during a specified period (typically a year). This can include resignations, layoffs, retirements, or terminations.

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What is a good turnover rate?

A good turnover rate varies by industry, but typically:

• 10% or lower — considered healthy or low
• 10%–20% — average or normal
• above 20% — may be a sign of poor retention, low engagement, or workplace issues