KPIHuman Resources

Staff Turnover Rate

Percentage of paid employees who leave the organisation in a period, a key indicator of culture and sustainability

What is Staff Turnover Rate?

Staff turnover rate is the percentage of staff who leave in a period, compared with average headcount. It shows how stable the workforce is.

High turnover raises recruitment and training costs and can disrupt service, so it is a core measure of workforce health.

How this KPI is measured

Function
Human Resources
Sub-function
Talent Retention
Industry
All Industries
Type
Lagging
Impact
People
Unit
%
Measurement frequency
Quarterly / Annual
Formula
(Number of staff leavers / Average headcount) × 100

How to calculate it

Divide the number of staff leavers by average headcount, and multiply by 100.

For example, if 90 staff left over a year and average headcount was 600, turnover is 15%.

Break it down by reason, department and length of service, and compare with previous years and similar organisations.

Where it is used

  • Tracking workforce stability

    Monitor changes.

  • Planning recruitment

    Estimate replacement needs.

  • Finding problem areas

    Compare teams.

How to improve it

Tips and common mistakes

  • Use a consistent definition and average headcount.
  • Seasonal patterns matter.
  • Compare against your own sector.

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