Employee Turnover Rate Calculation
The employee turnover metric shows the percentage of employees who leave the company for the current month. Employee turnover happens due various reasons including termination, resignation, or retirement. A lower turnover rate can indicate satisfied and motivated employees which contribute to the overall performance of a company.
NetSuite calculates the monthly turnover rate using the following formula:
|
Employee Turnover Rate |
= |
(# of Employees Leaving from Start to End of a Month/# of Active Employees from Start to End of a Month) 100 |
This KPI does not require a workbook to show data on the dashboard. The values used in the calculation is sourced from the Hire Date and the Termination/Release Date fields of an Employee record.
The formula for calculating the number of active employees for the month is:
|
Number of Active Employees for the Month |
= |
(Number of Active Employees at the Start of the Month +Number of Active Employees at the End of the Month)/2 |
For example, on May 1st, Department A has 50 employees. Halfway through the month, 2 senior employees retired and 3 other employees resigned. At the end May, Department A has 45 employees. The employee turnover rate is calculated as:
|
Employee Turnover Rate |
= |
(5/47.5) 100 |
|
|
= |
(0.105) 100 |
|
|
= |
10.52% |