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What is your employee turnover rate, annualised, and what is it costing you?
Average headcount = (start + end) ÷ 2. Turnover = leavers ÷ average headcount × 100. For periods other than a year, annualised turnover = period turnover × 12 ÷ months. Voluntary turnover uses resignations only. Retention = (start headcount − leavers) ÷ start headcount. Hires implied = end − start + leavers.
Illustrative companies, worked out with the same formula the calculator uses.
| Period | Headcount | Leavers | Period turnover | Yearly turnover | Retention |
|---|---|---|---|---|---|
| Year, growing team | 200 → 220 | 21 | 10.0% | 10.0% | 89.5% |
| Year, flat team | 80 → 80 | 16 | 20.0% | 20.0% | 80.0% |
| One quarter | 100 → 100 | 5 | 5.0% | 20.0% | 95.0% |
Illustrative figures only — not benchmarks.
Turnover rate = leavers in the period ÷ average headcount × 100, where average headcount = (headcount at the start + headcount at the end) ÷ 2. With 200 employees at the start, 220 at the end and 21 leavers, the average is 210 and turnover is 10%.
Multiply the period's rate by 12 ÷ the number of months. A 5% quarterly turnover is about 20% a year. The calculator does this automatically when the period isn't 12 months.
Turnover counts who left as a share of your average headcount. Retention counts who stayed, as a share of the people you had at the start. They don't simply add up to 100% because people hired during the period can also leave. The calculator's retention rate assumes every leaver was on staff at the start.
Leavers who chose to go — resignations — as opposed to dismissals, redundancies or contracts ending. It is the part of turnover you can most influence with pay, management and growth. Enter resignations to see it separately.
It depends on the role. Add your own cost of replacing one leaver — for example your cost per hire plus the output lost while the seat is empty (see our cost of vacancy calculator) — and the calculator multiplies it by your leavers.
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Employee turnover
(200 + 220) ÷ 2
15 resignations
assumes every leaver was on staff at the start
end − start + leavers