Measuring Employee Turnover Rate

26 Mar

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Le livre blanc de l’engagement collaborateur

Pourquoi le désengagement représente un manque à gagner considérable pour les entreprises ? Comment améliorer l’engagement des collaborateurs en créant une expérience salarié forte ? Quel sont les mesures à mettre en place pour offrir une expérience salarié forte à ses collaborateurs ?

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Are you wondering how to effectively measure the turnover rate in your company? In this article, discover the formula to calculate this rate and use our calculator to find out your turnover rate in no time!

Employee Turnover Rate Calculation

Measuring employee turnover rate in your company starts with a simple formula:

([(Number of departures in period N + number of arrivals in period N) /2] / Workforce in period N) x 100

Let's take an example to make it more concrete. Imagine you have 312 employees on January 1st, 47 new recruits and 56 departures during the year. The calculation would be:

([(56 - 47)/2)/312] x 100 = 2.88%

Consequences of High or Low Turnover Rates

A turnover rate can say a lot about a company's health. A rate below 5% is often a sign of a healthy social climate. Employees are satisfied, motivated and see a future in the company. On the other hand, a rate above 15% is an alarm signal. It can indicate difficult working conditions, lack of recognition or management problems.

But that's not all. Turnover rate also varies by industry. For example, in retail, the average rate is around 20% to 30%, which is much higher than in other sectors.

Factors Influencing Employee Turnover Rate

Employee turnover rate reflects your company's health. Several factors can influence it, and understanding these elements can help you better manage your teams and improve employee retention.

First, company strategy plays a crucial role. If your company is growing rapidly, you might hire many new employees, which can temporarily increase turnover. Conversely, layoffs may increase the rate.

How to Reduce Employee Turnover Rate

To reduce turnover, you must first understand that employee retention is based on several pillars. Here are some concrete and effective strategies to achieve this.

Improve the Work Environment A pleasant and well-equipped work environment is essential. This includes ergonomic desks, relaxation areas, and a positive overall atmosphere. Also consider offering opportunities for professional development and training.