Turnover Rate

What is Turnover Rate?

Turnover rate is a key HR metric that quantifies the percentage of employees who leave an organisation during a specific time period, usually calculated on an annual basis. It is typically expressed as the number of separations divided by the average number of employees, multiplied by 100.

Why Turnover Rate Matters

Tracking turnover rate helps organisations assess workforce stability and the effectiveness of their retention strategies. High turnover can signal issues with management, compensation, culture, or career development opportunities. HR teams often break turnover down into voluntary and involuntary categories and benchmark their rates against industry averages to identify areas requiring attention.