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GLOSSARY / Voluntary Turnover Rate

Voluntary Turnover Rate

Read Time: 1 Mins

    Voluntary Turnover means the turnover in a company that happens when an employee willingly decides to leave his/her current job position due to better job opportunities, better pay, better environment, etc. This type of turnover turns out to be high-priced for the company because it does not include any of the company’s plans and they sometimes lose high-performing employees. The Voluntary Turnover Rate is the measurement that defines the number of employees who left the company voluntarily in a year or a specific period.

    How to calculate Voluntary Turnover Rate?

    Number of Voluntary separations / Average number of employees * 100

    Here, the average number of employees = (Number of employees at the beginning + Number of employees at the end) / 2

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