Calculating employee turnover: The problem
As those familiar with this topic might know, there is currently no ‘right’ way to calculate turnover. A quick Google search will show multiple websites using different formulas. The same happens at the professional bodies.
The American National Standards Institute (ANSI), an institute dedicated to facilitating consensus standards, uses a different definition than the International Organization for Standardization (ISO). The turnover formula proposed by ISO also poses some ambiguity and can be explained (and thus calculated) in more than one way.
It is easy to understand why HR practitioners will get confused when it comes to this topic. Besides the technical difficulties of calculating the total number of employees and the ones who quit – a topic we won’t get into in this article – there is the challenge of calculating the turnover rate. Having a clear formula will help tremendously.
In order to answer the question how to calculate an employee turnover rate, we first need to define what we mean by employee turnover.
Employee: ANSI defines an employee as an individual ‘that received any payroll payment during the pay period that includes the 12th day of the month’. Additionally, we would like to add that an Employee cannot be a new Hire – more about that in the next section.
Turnover: Leaving the organization due to dismissal, attrition, and other reasons. These people will not be on the payroll during the next period.
Turnover rate: The percentage of Employees leaving in a given period of time.
Turunnya Keuntungan Perusahaan
Pada akhirnya, menurunnya tingkat produktivitas perusahaan akan memengaruhi keuntungan atau laba perusahaan. Akan ada banyak pekerjaan yang tidak bisa diselesaikan dengan baik, angka penjualan yang merosot, dan akhirnya akan berdampak pada perolehan keuntungan perusahaan.
Mengapa penting untuk mengetahui employee turnover?
Memastikan bahwa anda memiliki employee turnover rate yang rendah membantu anda menghemat waktu dan biaya dalam melakukan pencarian kerja untuk mengisi peran baru. anda juga akan menghemat energi untuk orientasi dan melatih lebih banyak karyawan baru. Menyadari tingkat turnover anda membantu anda menyadari betapa nyaman dan terlibatnya karyawan di perusahaan anda.
Jika turnover karyawan rendah, itu berarti karyawan merasa bersemangat dan termotivasi untuk bekerja di perusahaan anda untuk waktu yang lama, yang juga dapat meningkatkan produktivitas karyawan.
Skilled vs. unskilled employees
Unskilled positions often have high turnover, and employees can generally be replaced without the organization or business incurring any loss of performance. [citation needed] The ease of replacing these employees provides little incentive to employers to offer generous employment contracts; conversely, contracts may strongly favour the employer and lead to increased turnover as employees seek, and eventually find, more favorable employment.
Kumpulkan jumlah karyawan yang keluar
Temui manajer SDM atau manajer departemen anda untuk mengumpulkan jumlah pasti karyawan yang meninggalkan perusahaan dalam periode pengukuran yang anda tentukan. Pastikan untuk mengonfirmasi angka terakhir dengan pimpinan dan manajer SDM sebelum menghitung, karena angka yang salah dapat mempengaruhi hasil persamaan anda secara signifikan.
Negative consequences
Dissenting opinion by John Lipinski
Because of the differences in both approaches, I approached John Lipinski.
John holds a Ph.D. in cognitive psychology. He is the founder of the HRanalytics101 website, which publishes content about the more technical parts of measurements and analytics. He is also an instructor in our AIHR Academy Data Science in R course. John was kind enough to give feedback on this piece and added his view on calculating the employee turnover rate. JanuaryFebruaryMarchOriginal Employee pool1009080Terminations per month101010
When it comes to the example above – assuming no new hires – I think the other approach measure would take the average of the people at the start (100) and at the end (70) for a denominator of 85. 30/85 = 35.2%. That might seem wrong but remember that in January you lost 10 people when you started with 100. By March though you lost another 10 when you were only starting the month with 80 so in one measure your turnover is getting worse… You are losing the same absolute amount of people even though your starting pool is smaller. That’s not a good trend. JanuaryFebruaryOriginal Employee pool10Terminations per month10
The other given example is one that clarifies the issue at play, but it overlooks another possible problem, namely that at some point in the month you had no employee. On any given day in that month then, on average, you had less than 1 employee working.
In this edge case you would not say there was 200% turnover. From another perspective, though, it makes sense: you lost 1 person but on average, throughout the month you had less than one employee working (they only worked part of that month).
In a more natural case, you very well could have more than 100% turnover. If you have high turnover, then you could be hiring more people with continuous quitting and more hiring, etc. At the end the year you have about the same number of employees but you had many more start, work for a while, and then leave. This means you had turnover in excess of 100%.
For what it is worth, you can see some related issues pop up in customer churn metrics and in inventory turnover too.
Overall, I think there is value in doing something like Retention for a given set at the beginning of a period and then also treating the new hires differently. Still, I’m not sure what determines when a new hire becomes an employee. That decision would seem arbitrary and might just be pushing the issue to another place.”
Special thanks to Lyndon Sundmark for providing much of the input for this article and to John Lipinski for challenging our ideas and helping us create a better result.
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is the founder and Dean of AIHR. He is an expert in shaping modern HR practices by bringing technological innovations into the HR context. He receives global recognition as an HR thought leader and regularly speaks on topics like People Analytics, Digital HR, and the Future of Work.
Employee Turnover adalah cara untuk mengukur tingkat di mana karyawan meninggalkan organisasi dan digantikan oleh karyawan baru selama periode tertentu. Pengukuran metrik ini mencerminkan stabilitas tenaga kerja dalam sebuah perusahaan. Memahami tingkat bergabung dan keluarnya karyawan dalam sebuah perusahaan ternyata berperan untuk mempertahankan tenaga kerja yang produktif.
Perhitungan Employee Turnover Rate Bulanan
Untuk menghitung tingkat pergantian karyawan bulanan, ikuti rumus berikut:
Jumlah total karyawan yang keluar dalam satu bulan______________________________________________________ x 100(Jumlah karyawan di awal bulan + jumlah karyawan di akhir bulan) : 2
Perhitungan Employee Turnover Rate Tahunan
Untuk menghitung tingkat pergantian karyawan tahunan, ikuti rumus berikut:
Jumlah total karyawan yang keluar dalam satu tahun______________________________________________________ x 100(Jumlah karyawan di awal tahun + jumlah karyawan di akhir tahun) : 2
Apa arti dari angka employee turnover?
Setelah menghitung tingkat employee turnover bulanan dan tahunan, penting untuk mengartikan angka-angkanya:
Menghitung employee turnover secara bulanan dan tahunan sangat penting bagi perusahaan mana pun yang ingin mempertahankan tenaga kerja yang stabil dan efisien. Metrik ini memberikan wawasan berharga mengenai retensi karyawan dan dapat membantu membuat keputusan strategis.
People usually include voluntary resignations, dismissals, non certifications and retirements in their turnover calculations. They normally don’t include internal movements like promotions or transfers. The employee turnover rate is a metric of the effectiveness of the human resources management system and the overall management of an organization.
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Narcissism and psychopathy
According to Thomas, there tends to be a higher level of stress with people who work or interact with a narcissist, which in turn increases absenteeism and staff turnover.[37] Boddy finds the same dynamic where there is a corporate psychopath in the organisation.[38]
Low turnover may indicate the presence of employee "investments" (also known "side bets")[39] in their position: certain may be enjoyed while the employee remains employed with the organization, which would be lost upon resignation (e.g., health insurance, discounted home loans, redundancy packages). Such employees would be expected to demonstrate lower intent to leave than if such "side bets" were not present.
How to Calculate Employee Turnover Rate
Menyusun Strategi Engagement Karyawan
Membuat strategi engagement adalah dengan cara membuat program pra karyawan, seperti membuat program insentif, reward, kompensasi, pelatihan skill, atau fleksibilitas jam kerja.
Selain itu, perusahaan juga harus mampu menerapkan performance interview. Hal ini akan sangat berguna agar pihak perusahaan bisa melakukan evaluasi, dan menentukan langkah selanjutnya yang harus dijalankan dan dikembangkan.
Perusahaan juga harus lebih membuka diri dengan cara melakukan survei tingkat kepuasan pada karyawan, minimal satu bulan sekali.
