Leavers over average headcount, times 100
Count everyone who left in the period — resignations, terminations, retirements and layoffs alike. The base is the average headcount, not the starting or ending number: add the count at the start and the end and divide by two. Fifteen leavers against 110 average staff is 13.6%.
Annualize a short period before you compare it
A monthly or quarterly figure means little next to yearly benchmarks until it is scaled up. Multiply by 12 divided by the months measured.
- Quarterly. 5% over three months → 5 × 4 = 20% a year.
- Monthly. 2% in one month → 2 × 12 = 24% a year — single months swing wildly, so read them as a trend, not a verdict.
Where a rate lands by industry
Annual turnover varies enormously by sector, which is why a cross-industry average is close to useless on its own. These are typical US annual rates.
| Industry | Voluntary | Total |
|---|---|---|
| Leisure & hospitality | ~5%/mo | Highest |
| Retail & wholesale | 3–4%/mo | High |
| Manufacturing | ~2%/mo | Moderate |
| Finance & insurance | ~1.8%/mo | Low |
| Government | ~1.3%/mo | Lowest |
Rates are monthly separation rates from the US Bureau of Labor Statistics JOLTS survey; hospitality churns fast because roles are seasonal and easy to backfill.
What people get wrong
- Voluntary vs involuntary. Track resignations and retirements separately from terminations and layoffs. High voluntary turnover points to retention problems you can act on; high involuntary can signal weak hiring.
- Retention is just the mirror. Retention rate = 100% − turnover rate. 15% turnover is 85% retention — the same number, stated the other way.
- Transfers are not turnover. An internal promotion or lateral move is not a separation. Only count people who left the organization entirely.
Common questions
How do I calculate turnover rate?
Divide the number of people who left during the period by the average headcount, then multiply by 100. Average headcount is the start count plus the end count, divided by 2. So 15 leavers against an average of 110 staff is 15 divided by 110 times 100, which is 13.6 percent.
What is a good staff turnover rate?
It depends on the industry. The US all-industry average is roughly 13 to 18 percent a year. Hospitality and retail run much higher, while finance and government sit near 1 to 2 percent. Compare yourself against your own sector, not across sectors.
How do I annualize a monthly or quarterly turnover rate?
Multiply the measured rate by 12 divided by the number of months in the period. A 5 percent quarterly rate annualizes to 5 times 4, which is 20 percent. This lets a partial period be compared with yearly benchmarks.
