When employees choose to leave an organization due to career growth, job dissatisfaction, or better opportunities elsewhere.
HR professionals analyze voluntary turnover rates to identify trends, improve employee retention strategies, and address workplace concerns before they lead to high attrition.
Voluntary turnover is calculated by dividing the number of employees who choose to leave the organization (not due to layoffs or termination) by the average number of employees during that period.
Formula:
Voluntary Turnover Rate = (Voluntary Exits ÷ Average Number of Employees) × 100
Example: If 5 employees voluntarily left out of an average staff of 100, the rate is (5 ÷ 100) × 100 = 5%
An employee resigning to pursue higher education, start their own business, or take a job elsewhere is an example of voluntary attrition. It’s when the employee chooses to leave the organization on their own terms.
Turnover Rate = (Total Number of Separations ÷ Average Number of Employees) × 100
This includes both voluntary and involuntary exits (e.g., resignations, terminations, retirements).