High employee turnover can quietly erode a company’s productivity, morale, and bottom line. Knowing how to calculate and reduce your turnover rate is essential for building a stable, high-performing team.

How to Calculate Employee Turnover Rate

Use this simple formula:

Turnover Rate (%) = (Number of Employees Who Left ÷ Average Number of Employees) × 100

Example:
If 8 employees left in a quarter and the average number of employees was 80:
(8 ÷ 80) × 100 = 10% turnover rate

Track it monthly, quarterly, and annually to spot trends.

Why Turnover Matters

• High turnover = high cost (recruiting, onboarding, lost productivity)
  
• Impacts team morale and client relationships
  
• May indicate issues with leadership, culture, or job design

Types of Turnover to Monitor

• Voluntary – Employee resigns (often fixable)
  
• Involuntary – Termination (can be strategic)
  
• High-performer turnover – Your biggest red flag

How to Improve Employee Retention

1. Hire for Job & Culture Fit
   Use structured interviews and job fit assessments.
   
2. Offer Competitive Pay & Benefits
   Regularly benchmark against industry standards.
   
3. Provide Growth Opportunities
   Employees stay where they can learn and advance.
   
4. Strengthen Onboarding
   First impressions matter—make day one count.
   
5. Gather Exit Feedback
   Conduct exit interviews and act on insights.

Final Thought

Turnover is more than a number—it’s a story about your company’s culture and employee experience. Track it, understand it, and take proactive steps to retain your best people.

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