No company is exempt from the facts; all businesses will experience some degree of employee turnover.  Replacing lost employees requires a great deal of effort from recruiting qualified candidates, to conducting interviews and training new hires. This, in turn, costs the company valuable time and money, not to mention taking its toll on employee morale. Therefore, it is vital for anyone in a management position to have a strong understanding of turnover so they can do their part in keeping their own business’s turnover rates low compared to industry and competitor averages.

Fortunately, calculating employee turnover is a simple measure. Your annual turnover rate is the ratio of total employee separations (this includes both voluntary and involuntary terminations, such as retirements, resignations, dismissals, and layoffs) to the average number of active employees. You can effectively measure your company’s annual employee turnover rate by determining the separations and average monthly employment by following. Try it out by following these simple steps.

Step one

Add up the monthly employment for the previous year, and then divide by 12 to find your average monthly employment. Depending how frequently you pay your employees, you will also want to add in the number of deposits for each payroll. You then divide this by two to determine the average employment for a given month.

Step two

Find the total number of employee separations for the previous 12 months. You may add separations for an accounting period, such as a quarter to project the total for the year, however, keep in mind that this allows for the possibility of skewed results due to variations in seasonal employments and layoffs.

Step three

Determine your annual employee turnover rate. This is the ratio of the total number of separations to the average monthly employment for the previous 12 month period.


Although it is imperative to accurately measure employee turnover, it is not difficult to do. While turnover can be costly, many strategies exist for reducing turnover before it becomes an issue. Staffers, Inc. prides itself on helping top Mississippi companies keep turnover rates low by hiring the best Jackson area job candidates. We also set competitive compensation packages, promoting positive company cultures, and providing clear paths for career growth. For additional strategies on decreasing employee turnover rate in Jackson, Mississippicontact Staffers, Inc. today!

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