Methodology
Estimates average headcount from the beginning and ending workforce, divides separations by that average to calculate turnover, annualizes the rate from the months entered, then reports retention, implied hires, replacement ratio, and target-separation support.
Limitations
- Uses a simple average-headcount denominator and does not model monthly movement, role mix, or weighted turnover by criticality.
- Assumes the beginning, ending, and separation figures are internally consistent and measured over the same period.
- Does not distinguish voluntary and involuntary exits unless the user applies that definition before entering separations.
- This is a workforce-planning and benchmarking metric, not a legal, payroll, or talent-strategy decision engine.
Disclaimer
Use the result as a planning and benchmarking aid only. Before relying on it for staffing, restructuring, or retention-policy decisions, confirm the organisation's turnover definition, reporting period, and workforce context.