Definition: The number of employees who left in the reference period divided by the average number of employees in reference period multiplied by 100.
The average number of employees = (number of employees at the start of the reference period + number of employees at the end of the reference period)/2
For annual employee turnover: the average number of employees can be calculated by making an average of the monthly employee average.
For annual employee turnover: the monthly employee turnover is calculated, this values are then used to find the the annual employee turnover. An average of average monthly turnover it’s used.
Note: Applying the above formulas on the same set of data will return different results.
Particular case: Employee turnover can be over 100% when the number of employees who left the company is grater then the employee average.
Complementary KPI: Retention rate
You may find the Employee Turnover Rate under other names like: Churn, Attrition.
Relevant dimensions: department, first year or 30/60/90/180 days from hire, managerial and non-managerial positions, gender, performance, potential, internal equity rate, external competitiveness rate, key people or jobs, age, seniority, absenteeism.
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KPI available in Humano People Analytics Platform library.