A method exists for quantifying the rate at which employees leave an organization over a specific period. This computation typically involves dividing the number of separations during the period by the average number of active employees during the same timeframe, then multiplying by 100 to express the result as a percentage. For instance, if a company with an average of 100 employees experiences 10 departures in a year, the resulting figure is 10%.
This metric provides valuable insights into workforce stability and organizational health. A high value may indicate underlying issues such as poor management, inadequate compensation, or limited opportunities for advancement. Conversely, a low value suggests employee satisfaction and retention. Tracking this figure over time allows organizations to identify trends and implement strategies to improve employee experience and reduce the costs associated with recruitment and training.
