This employee turnover metric tells you how many employees leave your company. Your overall turnover rate is a high-level measurement of your employee turnover. With employee turnover metrics, finance and HR departments can better understand the company’s growth, talent turnover, and hiring process. The 16 Most Important Employee Turnover and Retention Metrics Not to mention that you burn cash recruiting and potentially allocate more budget to contractors to cover the gaps.Įmployee turnover metrics help you provide key insights to HR leads who can then reassess and change procedures to make it less likely for talent to leave. What Employee Turnover Metrics Mean for Your BusinessĪ high turnover rate decreases productivity, lowers company morale, and disrupts sales opportunities. If your SaaS startup experiences high growth but still has a turnover rate of above 10%, your retention efforts are lacking, and you need to look into the issue. SaaS Capital found that the fastest-growing SaaS companies (with annual growth rates of over 50%) had an employee turnover rate of around 7.5%. You can compare your employee turnover rate with similar companies to determine where your human resource management stands. Quarterly Employee Turnover Rate = (5 / 25) x 100 = 20% Here’s how your finance team and HR professionals can calculate the quarterly employee turnover rate:Īverage Number of Employees = (20 + 30) / 2 = 25 During the quarter, five employees left your company and 15 newcomers joined, taking the final headcount to 30. Suppose your SaaS startup had 20 employees at the start of the first quarter.
AVERAGE TURNOVER RATE HOW TO
An Example of How To Measure Employee Turnover
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