Turnover rate

lydiac · August 2003

Does anyone have an actual formula for determining your company's (or a particular department's) turnover rate?

clarkbar · August 2003

Try this link. It will do it for you.

[url]http://hrtools.com/etoolsapplets/turnovercalc/TurnoverCalc.asp[/url]

lydiac · August 2003

Thanks - that was helpful - and led to other interesting pages, too!

jmpmo · August 2003

>Try this link. It will do it for you.
>
>[url]http://hrtools.com/etoolsapplets/turnovercalc/TurnoverCalc.asp[/url]

Great Website! Thanks

HRQ · August 2003

One month's turnover:
# terms/Total # of employees = % turnover

Annualized (to determine trend for year - so you can estimate that year's turnover based on YTD turnover)
# terms YTD/# months completed YTD X 12 / Total employees

I like using the Annualized formula - it helps managers see overall trend and avoids focusing on one bad month or period of time. Occasionally, we see an "exodus" which makes one month look bad in comparison to others, but by year-end, it evens out.

Hope this helps!

lydiac · August 2003

Thanks - it does help. We are such a small employer (30 employees) that it hardly makes sense to calculate by month.

JulieP · August 2003

>Annualized (to determine trend for year - so you can estimate that
>year's turnover based on YTD turnover)
># terms YTD/# months completed YTD X 12 / Total employees

For total employees, do you use the average number of employees for the year, or do you use the current number of employees?

HRQ · August 2003

Good question. I use current total employees because our staffing doesn't vary much throughout the year. We always have 390-410 employees, which to me isn't a big difference.

I suppose if the # of employees fluctuated throughout the year, I'd use an average.

AprilShowers · August 2003

HRQ (or anyone else

)-
Do you factor in employee department transfers in your total number of terminations/separations? Or because they stay with the company, do you not count them? Im confused as to what to include, as when they leave a department they cause a vacancy we need to fill, shouldn't that count toward turnover??
Thanks!
April

Don D · August 2003

For determining departmental turnover, I factor OUT such things as retirements and transfers. Since the true value of looking at turnover is trying to "DO SOMETHING ABOUT IT", we can't expect managers do do anything about transfers and retirements, so I prefer to consider the figures minus those. Another thing that always skews the figure is the spikes in the number of job slots available during the month - maybe 100 this month and 130 next month, causing us to go to averages which dilutes the meaning of turnover. If the number of positions available were the same, constant all year long and nobody transferred or retired, then we would have a true turnover trend to look at. I've found that the higher up the food chain the executive is who is looking at your chart, the less real meaning the figure has. He looks at a nice chart which indicates a company-wide average turnover rate of 9%, and he finds that acceptable, but fails to dig deep enough to see that my department is 27% and two others are zero. What is it they say about a man who has his head in the oven at 350 degrees and his feet in a bucket of water -- On average, he is considered to be comfortable.

AprilShowers · August 2003

Thanks, that's what I needed to know. I prepared a report for the COO and did not factor in transfers and he asked me why not. I guess it always depends on what you are looking for with the results.

Turnover rate

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