Top Diversity Measures and Metrics: Turnover Rate

Happy New Year! I hope you had a safe and prosperous holiday season. Our next diversity metric is a fairly common one. Turnover rate provides an excellent means to determine how effective you are at retaining your employees. It also allows you to compare retention rates between different employee demographic groups and categories. Turnover rate uses a simple formula that compares the number of terminated employees with the average employee population for a specified time frame (e.g., one year):

• Turnover Rate = NT/AE
  
• NT = Number of Terminated Employees (Voluntary and Involuntary)
  
• AE = Average Employee Population
  
• Example: 45 terminated employees/318 average employee population = 14.2% Turnover Rate
  

Next Post: January 9, 2014 – Top Diversity Measures and Metrics: Stability Factor