How is Employee Turnover Calculated?

Fear not, calculating employee turnover is not as difficult as it might sound. There are plenty of tools out there to support you in this task. Calculating employee turnover is the first step to learning whether a company is running as it should. Most employee turnover is due to bad hiring decisions, and therefore if you know your rates of employee turnover are high, you can take a look at what is causing it and rectify the issues.

The Maths

Simply speaking, the equation to work out your employee turnover figure is as follows:

Number leavers over given period x 100)/Average total number employed over given period.

However, there are sites that will do all the maths for you. Check out, Big 5 Assessments – Turnover Calculator, if you need a little extra help or more information.

When you are working out your turnover figures, it can be useful to take some further variables into account. For example, what percentage of leavers resigned, what percentage came from a certain department, or any other variable you wish to look at in further detail.

Use the Maths…

Calculating the employee turnover of your company is all well and good, but it is important that you do something with this figure. There is no point working out turnover rates to do nothing with them. The information gleaned from calculating turnover can be used in so many different ways to support the improvement of your company. Whether it be looking at your recruitment process, or a certain department, or your onboarding processes. The information is so valuable and when used correctly, can really help your company development.

Summary

Whether you choose to use an online calculator, or do the maths for yourself, the information gained as a result of working out your employee turnover rates can be so incredibly valuable for a company. Just remember to make sure that you do something with the information gained.

About the Author: nikkyvb

Nikky van Bommel is the Marketing Director for Big 5 Assessments and has worked in the Psychometric Testing industry for over 10 years. Nikky is responsible for all marketing and social media for the organisation.