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Dear Workforce How Do You Calculate Turnover

Two formulas you can use to figure out how many employees are coming and going.
August 27, 2000
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Related Topics: Retention, Dear Workforce
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Q

Dear Workforce:

How do you calculate turnover?

--Randy Lincoln, operations manager, Nashville, Tennessee

A Dear Randy:

One simple formula is:

Separations divided by
Employees at the end of the month (or year) =
Turnover

So let's use a year, not a month.If you've had 10 separations, and you've got 100 employees at the end of the year, that's 10% turnover. 10 Separations divided by 100 Employees at the end of the year is 0.1, or 10%.

A slightly more complicated--though still not mind-numbing--formula can be used if you're interested in taking into account planned reductions:

Turnover = separations divided by

{(employees at the beginning of the year plus employees at the end of the year) divided by two}.

Let's try numbers for that one. Let's say you had 10 separations. Let's also say you had 110 employees at the beginning of the year, and 100 at the end of it. In that case, turnover would be 10 divided by (110 + 100)/2. This equals about 9.5%.

In this second case, you've reflected in your equation the fact that you hadn't planned on filling 10 of the positions. So your turnover is lower.

You could of course substitute "month" for "year".

If you don't yet have a headache, and want more information:

  • Ask others how they calculate turnover at the Recruiting & Staffing Forum or the General Forum at /community.

 

SOURCE: Online Editor Todd Raphael. Also CCH's 2000 U.S. Master Human Resources Guide.

E-mail your Dear Workforce questions to Online Editor Todd Raphael at raphaelt@workforceonline.com, along with your name, title, organization and location. Unless you state otherwise, your identifying info may be used on Workforce.com and in Workforce magazine. We can't guarantee we'll be able to answer every question.

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 The information contained in this article is intended to provide useful information on the topic covered, but should not be construed as legal advice or a legal opinion. Also remember that state laws may differ from the federal law.

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