How to Calculate Company Turnover
August 5, 2010 1 Comment
Company turnover is the amount of employees leaving an organization either by quitting, retiring or being fired. A company’s turnover helps show how efficient a company is at keeping and developing employees. A low turnover shows the company prefers to keep its employees and that the employees at the company prefer to stay with the company. As of April 2010, average turnover rate in the U.S. is 3.1 percent.
Add together the number of people who were fired, quit, retired or left the company during the previous year. For example, since the beginning of the year, 12 people left the company.
Calculate the average number of employees the company had during the year. For example, if at the beginning of the year the company had 450 employees and at the end of the year the company had 470 employees, then the average number of employees for the year was 460 employees.
Divide the number of people leaving the company by the average number of employees. In the example, 12 divided by 460 equals a company turnover rate of 2.6 percent.