oboloo Glossary

Employee Turnover Ratio

oboloo Glossary

Employee Turnover Ratio

Employee turnover ratio is a key metric used to measure the rate at which employees leave an organization. It’s calculated by taking the number of employees who voluntarily left or were terminated during a specific period and dividing it by the average number of employees over that same period. This is expressed as a percentage. Employee turnover can have profound implications for businesses, as it can cost them time and money, so tracking this ratio is important for companies to understand how they are being affected. Companies that are able to effectively reduce employee turnover will be better positioned to maintain their competitive edge while also making sure they have the resources needed to continue driving success.