Formula
Employee Turnover Rate = (Number of Employees Who Left ÷ Average Number of Employees) × 100
Calculation Example
If a company has 200 employees and 20 leave in a year, Turnover Rate = (20 ÷ 200) × 100 = 10%
Data Source
HR records, payroll systems, exit interviews
Tracking Frequency
Monthly, Quarterly, Annually
Optimal Value
Lower is better; a turnover rate below 10-15% is ideal.
Minimum Acceptable Value
A high turnover rate suggests employee dissatisfaction or poor retention strategies.
Benchmark
Industry benchmarks: Tech ~13-20%, Retail ~50-60%, Healthcare ~15-30%
Recommended Chart Type
Line chart (to track trends), Bar chart (to compare departments)
How It Appears in Reports
Displayed in HR reports to analyze workforce stabili
Why Is This KPI Important?
Typical Problems and Limitations
Actions for Poor Results
Related KPIs
Real-Life Examples
Most Common Mistakes
