Handeware
Business

Turnover rate

15%
Yearly cost of turnover
$21,000.00

This is arithmetic for general information, not financial advice.

Employee Turnover Rate Calculator

Turnover is the share of staff who leave in a year. Every departure has a cost in hiring, training and lost work, and this puts a rough number on it.

How it works

Divide the number of people who left in the year by the average number of staff, then multiply by 100 for the rate. The cost is the number who left times what it costs to replace one person. The replacement cost is an estimate you set, so use the figure your own records support.

Worked example

With 6 people leaving from an average team of 40, turnover is 15% for the year. At $3,500.00 per replacement, that is about $21,000.00.

Questions

What is a normal turnover rate?

It varies a lot by industry. Retail and food service usually run higher than many office jobs, so compare with businesses like yours.

What goes into the replacement cost?

Advertising, interviewing, training and the time before a new hire is fully productive. Add up the real costs you can find.

Should I count people who moved to other roles?

Usually not, unless they left the business. Pick one rule and use it each year so the numbers can be compared.

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