What is a voluntary turnover rate?
Voluntary Turnover occurs when employees choose to leave their current job positions on their own accord, often for reasons such as better career opportunities, higher pay, or a more favorable work environment. This type of turnover can be costly for organizations, as it is unplanned and may result in the loss of high-performing employees.
The Voluntary Turnover Rate measures the percentage of employees who voluntarily leave a company over a specific time period, helping organizations assess workforce stability and identify trends.
How to Calculate Voluntary Turnover Rate
The formula for calculating the voluntary turnover rate is:
Voluntary Turnover Rate (%) = (Number of voluntary separations / Average number of employees) × 100
Where: Average number of employees = (Number of employees at the beginning of the period + Number of employees at the end of the period) ÷ 2