HR & recruitment glossary

Turnover rate

Definition

Turnover rate is the share of employees who leave in a period. Early turnover, within 90 days, often traces back to poor screening.

Turnover rate is usually calculated as the number of leavers in a period divided by the average headcount over that period, expressed as a percentage. For example, 30 leavers from an average of 200 staff in a year gives a turnover rate of 15%. Teams often split it into voluntary and involuntary leavers, and track early turnover among new starters separately.

High turnover means repeated hiring costs, lost productivity and pressure on the team left behind. When many people leave in their first weeks, the cause is often a mismatch the hiring process could have caught, such as unclear expectations about shifts, pay or the work itself. Realistic job previews, job-relevant screening questions and comparing early leavers against their screening results all help close the gap.

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