Free Employee Turnover Rate Calculator
Calculate your employee turnover rate using the SHRM formula. Compare against BLS industry benchmarks. Built for small businesses.
How to Calculate Employee Turnover Rate
The standard turnover rate formula used by SHRM divides total separations by average headcount, then multiplies by 100. Average headcount is the sum of beginning and end-of-period employees divided by two. This method aligns with how the Bureau of Labor Statistics calculates separation rates in the JOLTS program, making your results directly comparable to published benchmarks.
First, count all employees who left during the period. Include resignations, terminations, retirements, and layoffs. Exclude internal transfers and employees on leave. Second, calculate your average headcount by adding employees at the start and end of the period and dividing by two. Third, divide separations by average headcount and multiply by 100.
Voluntary vs. Involuntary Turnover
Total turnover combines all departures, but separating voluntary from involuntary turnover reveals different problems. High voluntary turnover (resignations, quits) typically signals compensation, culture, or management issues. High involuntary turnover (terminations, layoffs) may point to hiring quality problems or business restructuring.
| Type | Includes | What It Signals |
|---|---|---|
| Voluntary | Resignations, quits, retirements | Engagement, compensation, or culture issues |
| Involuntary | Terminations, layoffs, discharges | Hiring quality or business restructuring |
| Total | All departures combined | Overall workforce stability |
Industry Benchmarks by Sector
Turnover rates vary dramatically by industry. Accommodation and food services runs nearly 70% annual turnover, while finance and insurance averages around 22%. These figures come from the BLS Job Openings and Labor Turnover Survey (JOLTS), annualized from monthly data.
| Industry | Annual Turnover Rate |
|---|---|
| Accommodation & Food Services | 69.6% |
| Arts, Entertainment & Recreation | 67.2% |
| Construction | 52.8% |
| Retail Trade | 48.0% |
| Professional & Business Services | 43.2% |
| All Industries Average | 39.6% |
| Healthcare & Social Assistance | 36.0% |
| Manufacturing | 28.8% |
| Finance & Insurance | 21.6% |
| Government | 16.8% |
Once you know your turnover rate, the next step is understanding what it costs. Use our employee turnover cost calculator to see the dollar impact of each departure on your business.
Frequently Asked Questions
What is the difference between turnover rate and attrition rate?
Turnover rate measures all departures relative to headcount over a specific period. Attrition rate typically refers to departures that are not replaced, resulting in a shrinking workforce. The SHRM formula measures turnover: total separations divided by average employees, multiplied by 100. For a deeper comparison, see attrition rate vs. turnover rate.
Should I include layoffs in my turnover calculation?
Yes, for total turnover rate. BLS includes layoffs, discharges, and all other separations in their total separations figure. If you want to understand preventable turnover, calculate voluntary turnover separately by counting only resignations and quits.
How often should I calculate turnover rate?
Monthly tracking with quarterly analysis works well for most small businesses. Monthly data captures trends early, while quarterly reviews smooth out the noise that a single departure creates in a small team.
Why is my turnover rate so high compared to benchmarks?
Small businesses often show higher rates than published benchmarks because BLS data includes large employers with lower turnover. A 20-person company losing 3 people shows 15% turnover from just three departures. Compare your voluntary turnover against companies of similar size when possible. Learn more about what a high turnover rate means and when to act.
Can turnover rate be over 100%?
Yes. A 100% annual turnover rate means you replaced your entire workforce equivalent over the year. Some industries like fast food regularly exceed 100%. It does not mean every single employee left, since the same position may turn over multiple times.