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
How HR teams use this term
HR teams usually use Voluntary Turnover Rate when they write policies, explain employee communication, review payroll or leave records, or keep employee data clean in an HRMS.