Turnover Rate Calculator
The Online Turnover Rate Calculator is useful to calculate the employee turnover rate of a company. Employee turnover is by far one of the most dependable indicators of a company's long-term performance. Simply input the Total Employees, Voluntary Termination, Disciplinary Termination, and Unavoidable Termination. In a matter of seconds, you will have the Turnover Rate and Net Turnover Rate in %.
What is The Turnover Rate?
Employee turnover rate is the rate at which employees resign from a company. Any company having a high turnover rate means that the company loses lots of employees in less time.
What is Net Turnover Rate & True Turnover Rate?
Turnover rates can be broken down into two parts, namely ‘net turnover rate’ & ‘true turnover rate’.
Net Turnover Rate: It is a figure calculated & includes all staff that has left the company. Their reasons to leave the job are not taken into account.
True Turnover Rate: It is the rate that calculates & excludes any unavoidable terminations such as retirement & disability.
Performing the Analysis and Interpretation of the Turnover Rate Figures.
A company that has a very high turnover rate means that a lot of employees leave in a short period. Turnover rates can be high due to the following factors:
- Poorly trained staff
- Employee with less salary
- Working condition is not suitable
- Very stressful environment
- Quarrels in the workplace.
- Group exclusion, cultural & religious differences
- Unsuitable employee recruitment due to poor recruitment process
- Misleading job profiles
- Location issues with workplace
- Work environment which is not safe
- Competitor companies offering better benefits to employees
- Better opportunities
Finally, employees who are leaving the company should be interviewed. It will help to know the issues due which they are leaving & also help in rectifying any problems in the remaining employees.
Turnover Rate Formula
True Turnover Rate (TTR) = (VT + DT) / TNE
Net Turnover Rate (NTR) = (VT + DT + UT) / TNE
Here, TNE = Total Number of Employees
VT = voluntarily Termination
DT = Disciplinary Termination
UT = Unavoidable Termination
Steps to Calculate Turnover Rate
- First, check the number of employees in a company.
- Then check the terminations in the company in the specific period.
- Apply the formula to calculate the net & true turnover rate.
Visit onlinecalculator.guide to have access to free online beneficial tools that can help you simplify your computations.
Solved Example to Calculate Employee Turnover Rate
A big manufacturing company has a total of 3200 employees. But in the first quarter of 2022, there are a total of 52 terminations, out of which 24 are unavoidable, 44 are disciplinary & remaining 50 are voluntary terminations. Find out the net & true turnover rate of a company.
Solution:
Here, let us first write down all the values.
TNE = 3000
VT = 50 DT = 44 UT = 24
So, using both the formulae,
True Turnover Rate (TTR) = (VT + DT) / TNE
Net Turnover Rate (NTR) = (VT + DT + UT) / TNE
We get the final answer as,
TTR = 3.13% & NTR = 3.93%
FAQ's on Cost of Employee Turnover Calculator
1. Why is turnover so expensive?
The turnover seems to be very expensive because the direct costs are paid by an organization when any of the employees vacays. The additional costs for new recruitment are incurred by the organization itself.
2. How do I calculate turnover in Excel?
The turnover in Excel can be calculated by dividing the sales of a company by its inventory.
3. How much does turnover cost per employee?
The turnover cost per employee is 1.5-2 times the salary of an employee but according to the seniority of the individual, the restraint keeps fluctuating.
4. Is turnover net or gross?
Turnover determines the net sales generated by any business whereas profit explains the total residual earnings of a business.
