Employee turnover rate, or ETR, is a measure of how many employees leave an organization within a given span of time. ETR is perhaps one of the most important human resources metrics for an organization to track and understand. This is because a high ETR has many negative aspects for business, including the cost of replacement, loss of productivity, and loss of organizational and business knowledge.
To calculate ETR, use the following formula:
You simply take the number of employees leaving within a given time period divided by the average number of employees during that time period and then multiply by 100.
This recipe demonstrates how to calculate ETR.