Calculate your turnover rate for a month, quarter or year, and see the annualized figure.
Average headcount = (start + end) ÷ 2.
Turnover rate = separations ÷ average headcount × 100.
Annualized rate = period rate × 12 ÷ months in the period. This is a simple projection and seasonal businesses should compare like-for-like periods instead.
A restaurant group starts the quarter with 40 employees and ends with 44. Six people left during the quarter. Average headcount is 42, the quarterly turnover rate is 14.3% and the simple annualized rate is 57.1%.
Use it for monthly HR reports, to compare locations, or to see whether a scheduling or pay change made people stay longer.
Track voluntary and involuntary separations separately when you can. A high voluntary rate often points to schedules, pay or management, while involuntary turnover points to hiring and training.
A hotel housekeeping department starts June with 18 room attendants and ends with 16, and 3 people left during the month. Average headcount is 17.0, so June turnover is 17.6%. With the period set to 1 month, the simple annualized figure is 211.8%, which only means that if every month looked like June, the team would replace itself about twice in a year.
The annualized figure multiplies one period’s rate out to 12 months, so it exaggerates a single bad month or a seasonal wave of departures. Use it to compare against yearly figures, not as a forecast. Very small teams swing hard, since one leaver out of 5 people is already 20%.
Report them separately, otherwise planned seasonal endings inflate the rate.
Anyone who left employment: resignations, terminations and retirements. Internal transfers are usually excluded.
It varies widely by industry. Compare with your own history and similar businesses.
Monthly, with a rolling 12-month view.
Yes, when locations have their own managers or very different jobs. A combined rate can look stable while one store loses a third of its staff. Run each location with its own start, end and leaver counts, then run the company total.
Count them as leavers. They were on payroll during the period even though they appear in neither the start nor the end headcount, and leaving them out hides early quits. If short stays are common, report them on a separate line too.
More for the same job
Instead of adding up timesheets before you open the employee turnover calculator, let EZTime total employee hours. Book a demo to see it with your team.