What is Employee Turnover Rate?
Share of employees who leave in a period.
How to calculate it
Calculate Employee Turnover Rate as: Departures / Average headcount × 100. Pull the inputs from your connected data and track the trend over time in your dashboard.
Examples
Example 1
12 departures / 120 average headcount = 10% annual turnover.
Example 2
12 departures against an average headcount of 120 -> 10% annual turnover. Of those, 8 were regrettable, prompting a review of retention drivers.
Why it matters
Employee turnover rate is the share of employees who leave in a period and signals engagement, culture and cost risk. High turnover is expensive in recruiting, onboarding and lost institutional knowledge, and often points to deeper organizational issues. Mixing voluntary and involuntary exits obscures what is actually happening and what to fix.
Benchmark context
10% or below annually is generally healthy, though it varies widely by industry; separate voluntary from involuntary and regrettable from non-regrettable exits.
Common pitfalls
Mixing voluntary and involuntary exits.
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