Guide

How to calculate staff turnover

Get your number in ten seconds, then find out what it means: the formula, seasonal staff, the mistakes that skew it, and how you compare.

Work out your turnover rate

Three numbers from the last twelve months. Example figures are filled in to start you off.

Your staff turnover rate

42.9%

Roughly 4 in every 10 people left during the year.

18 leavers ÷ 42 average employees × 100

Now see what it's costing you → See how you compare ↓

The formula

One sum, two numbers.

Your turnover rate is the share of your team that left over a period, usually a year.

1

Count your leavers

Everyone who left during the year, for any reason.

18 people left

2

Find your average headcount

Add the start and end of the year, and halve it.

(40 + 44) ÷ 2 = 42

3

Divide, then multiply by 100

That's your turnover rate for the year.

18 ÷ 42 × 100 = 42.9%

Example: a restaurant group with 40 staff in January, 44 in December, and 18 leavers in between.

Seasonal staff

Busy summers break the quick method.

Start and end of the year can both land in your quietest months. If your headcount swings with the seasons, count your staff at the end of every month and take the average of all twelve.

People employed at the end of each month (example)
Show the numbers
MonthPeople
January30
February30
March32
April36
May42
June48
July52
August52
September44
October38
November34
December34

Start and end only

56.3%

18 leavers ÷ 32 × 100

Monthly average

45.8%

18 leavers ÷ 39.3 × 100

Same business, same 18 leavers, more than ten points apart. The monthly figure is the honest one.

Other measures

Three more numbers worth knowing.

Your overall rate mixes people who chose to go with people whose contracts ended. These split it apart.

Voluntary turnover

People who chose to leave ÷ average employees × 100

The one that tells you most about how people feel about working for you, because it leaves out dismissals, redundancies and contracts ending.

New-starter turnover

Joined and left within 12 months ÷ people who joined × 100

If this is high, look at recruitment and induction first. In adult social care in England, Skills for Care found 34.0% turnover among care workers in their first year in the role, against 15.3% for those with 20 years or more (2024/25).

Monthly turnover

Leavers that month ÷ average headcount that month × 100

Good for spotting a bad month early. For a yearly figure, add up twelve months of leavers rather than multiplying one month by 12.

Common mistakes

Four ways to get a misleading number.

Using your headcount on a single day

Use the average over the year, and the monthly average if you're seasonal.

Counting moves between your own sites

Only count people who actually left the business.

Changing what you count each year

Decide once whether seasonal and fixed-term staff are in, and stick to it.

Multiplying one month by twelve

Add up the last twelve months of leavers instead.

What's normal

How does your rate compare?

Your rate from the top of the page, against the most reliable UK figures we know of.

Your rate 42.9%
Hospitality 52%
Wholesale and retail 41.6%
All UK workers 34%
Adult social care (England) 23.1%

Your own number will probably be lower than the industry churn figures. Those come from a household survey (CIPD analysis of ONS Annual Population Survey data, 2022 to 2023) and include casual and seasonal work ending and people leaving work altogether. The care figure is measured from employer records, the way you'd measure it yourself (Skills for Care, 2024/25), so it's the most like-for-like.

More useful than any benchmark is your own trend. A rate that's climbing year on year, or one site that loses people far faster than the others, tells you more than a national average ever will.

Next

The rate tells you how many. Not what it cost, or why.

What it's costing you

Almost nobody works this out. CIPD's 2022 Resourcing and Talent Planning survey found only 17% of the organisations it surveyed calculated the cost of labour turnover.

Work out the cost

Why they're leaving

Exit interviews help, but they come after the decision. The best time to find out is while people still work for you, and while the problem is small enough to fix. That's what Pulsory is for.

Exit interview questions

Questions

Staff turnover questions

What is a good staff turnover rate?
There's no single number. It depends on your industry and on how the figure is measured. Compare yourself with businesses like yours, and above all with your own previous years. A falling rate, or sites that are improving, matter more than how you stack up against a national average.
How do I calculate monthly staff turnover?
Divide the number of people who left in the month by your average headcount for that month, then multiply by 100. For an annual figure, add up the last twelve months of leavers rather than multiplying one month by twelve.
Should I include people who were dismissed?
Yes, in your overall turnover rate. Then work out voluntary turnover separately, counting only the people who chose to leave. That's the number that tells you most about how people feel about working for you.
Do seasonal staff count?
You can include them or leave them out, as long as you do the same every year. If you include them, use an average of your month-end headcounts so the seasonal swing doesn't distort the result.
What's the difference between turnover and attrition?
In everyday use they mean the same thing. CIPD describes staff attrition rates as a synonym for turnover rates. Some businesses use attrition to mean roles that aren't replaced when someone leaves, so if you see both, check which is meant.

Find out why people leave, before they go

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