---
title: "Employee Turnover"
description: "Employee turnover is the rate at which employees leave and are replaced. Learn the turnover rate formula, the types of turnover, and how it differs from attrition."
url: "https://sageo.ai/glossary/employee-turnover"
source: "Sageo (sageo.ai)"
---


# Employee Turnover

Employee turnover is the rate at which employees leave an organisation over a period and are typically replaced. It counts all separations: resignations, dismissals, layoffs, and retirements. Turnover rate is usually reported monthly or annually and broken into voluntary and involuntary turnover, because each points to different causes.

**Also known as:** turnover rate, staff turnover, employee turnover formula

## Key takeaways

- Turnover is the rate at which employees leave and are replaced over a period.
- Formula: separations ÷ average headcount × 100.
- Split it: voluntary vs involuntary, regrettable vs non-regrettable.
- Regrettable voluntary turnover is the number leadership should watch most.

## At a glance

- **Formula:** Separations ÷ average headcount × 100
- **Types:** Voluntary / involuntary, regrettable / not
- **Measured:** Monthly or annually, by team
- **Related:** Attrition, retention, headcount

## Why does employee turnover matter?

Every departure costs recruiting time, ramp-up time, and lost knowledge. High turnover in one team or under one manager is often the clearest signal of a local problem.

## How do you calculate employee turnover?

Turnover rate = (number of separations ÷ average headcount) × 100

Average headcount = (headcount at start + headcount at end) ÷ 2

## What are the types of employee turnover?

- **Voluntary:** the employee chooses to leave
- **Involuntary:** the company ends employment
- **Regrettable:** you would have wanted them to stay
- **Non-regrettable:** a departure that is acceptable or even positive

Regrettable voluntary turnover is the number leadership should watch most closely.

## Worked example

A 300-person company starts the year at 290 and ends at 310, so average headcount is 300. It records 45 separations: 33 voluntary and 12 involuntary.

Total turnover = 45 ÷ 300 = **15%**. Voluntary turnover = 33 ÷ 300 = **11%**.

## Frequently asked questions

### Turnover vs attrition?

Many teams use them interchangeably. Where they differ, turnover counts exits that get backfilled, and attrition counts roles left unfilled or removed. Pick a definition and keep it consistent.

### What causes high turnover?

Common causes are poor management, limited growth, below-market pay, heavy workload, and weak onboarding.

### How do you calculate turnover rate?

Separations ÷ average headcount × 100, where average headcount = (start + end) ÷ 2. 45 leavers on an average of 300 is 15%.

### What is a good turnover rate?

It varies widely by industry. Compare against your sector and your own trend, and focus on regrettable voluntary turnover rather than the headline.

### What are the types of employee turnover?

Voluntary vs involuntary, and regrettable vs non-regrettable. Losing a top performer is very different from letting a poor fit go.

### How much does employee turnover cost?

Estimates range from a few months' to well over a year's salary per exit, counting recruiting, ramp-up time, and lost knowledge.