Below is a description on what formula we use to calculate employee turnover in our "HR dashboard" overview.
Annual turnover
Last 365 days.
Formula:
Number of employees terminated during the last 365 days / (Number of active employees today + Number of active employees 365 days ago) * 2 * 100
Monthly turnover
Last 30 days.
Formula:
Same as the annual formula, but using the last 30 days:
โNumber of employees terminated during last 30 days / (Number of active employees today + Number of active employees 30 days ago) * 2 * 100
First year turnover
Last 365 days.
Formula:
Terminated employees who worked less than 365 days / Employees terminated within last 365 days * 100
Current Retention
This is calculated by taking the number of employees that were working for the company 12 months ago, subtracting the number of employees that have left in the last 12 months, dividing that figure by the number of employees employed 12 months ago, and multiplying by 100 to get a percentage.
OR
A = the number of employees working for the company 12 months ago, and
B = the number of employees that have left in the last 12 months, then
Current retention = 100 x (A - B) / A.