Turnover Rate
Definition
The percentage of employees who leave a company over a set period.
What is Turnover Rate?
It’s a key HR metric that reveals how often employees leave and why. It includes voluntary and involuntary departures.
Why is Turnover Rate Important for Employers?
- High turnover increases hiring and training costs
- May signal culture or management issues
- Affects team morale and productivity
FAQs
How is turnover rate calculated?
Divide the number of employees who left during a period by the average number of employees, then multiply by 100 for a percentage.
What’s a healthy turnover rate?
It varies by industry, but generally 10–15% is considered average. Higher rates may signal culture, management, or compensation issues.
How can HR reduce turnover?
By improving onboarding, career development, engagement efforts, and exit interview analysis to identify root causes.
How ExtensisHR Can Help
We help you build a more resilient workforce by:
- Analyzing turnover trends
- Recommending retention strategies
- Benchmarking against industry averages
- Supporting engagement and exit processes