The Turnover Ratio Formula is a vital tool for businesses to measure the performance of their staff and understand their labor costs. The formula is calculated by dividing the total number of employees leaving the business in a given period (called “turnover”) by the average number of employees during that same period. This provides a ratio, which is then multiplied by 100 in order to get a percentage. This percentage can be used to understand how many employees are leaving, as well as providing insight into areas where improvements should be made to reduce turnover. By using the Turnover Ratio Formula, businesses can track changes over time and make adjustments to ensure their staff are happy and productive, while also keeping an eye on their bottom line.