The metric Turnover Rate means employees who left the organization, either voluntarily or involuntarily, as a percentage of headcount. This metric is crucial to understand all aspects of the talent cycle within your organization. Many organisations use this metric in isolation, for example it can indicate that the retention processes of the business are not working. On its own, it may indicate that the retention processes of the business are not working.
Our prebuilt Power BI packages for Turnover Rate will help HR professionals in your organisation better understand why people leave and actions to prevent it.
Terminations during the reporting period as a percentage of average headcount. Measurement of employee turnover for purposes of workforce planning that may include talent management, productivity, or cost reduction.
Termination Rate measures the percentage of employees who left the organization during the reporting period. It reflects the total employee turnover within the organization, including both voluntary and involuntary separation reasons. For example, a result of 20% indicates that terminations equated to 20% of the average size of the workforce. A result of greater than 100% indicates that terminations exceeded the average size of the workforce during the period.
The metric is key for calculating major indicators of recruitment, staffing effectiveness and turnover/retention.