Employee Turnover

Learn about Employee Turnover and more with Workstream and improve your hiring vocabulary. Workstream helps companies hire better, faster - everyday.
Schedule a Demo Try Workstream for Free

All businesses, big and small, aim to have an optimal workforce at all times. Good employees are good for business. However, there is always a chance that an employee will leave the company at some point. It is part of the business world and employment cycle. Whether the reason is for a better opportunity or moving to another city, employers have to deal with people leaving and replacing them with new talent if they choose to. In running a business, employers pay close attention to employee turnover. Let’s find out more about what it is. 

What is employee turnover? 

Employee turnover refers to the number of workers who leave an organization and are replaced with new employees within a specific period. Usually, it is measured every year.

Is employee turnover the same as employee attrition? 

Both employee turnover and employee attrition involve employees leaving an organization. Because of this, it is easy for some people to think that these terms mean the same thing. The truth is, they are not the same. What is the difference between the two? 

Employee attrition happens when an employee leaves the company because of natural causes like retirement, job elimination, or even the passing of the employee. When the employee leaves, the company intentionally does not replace the employee. 

On the other hand, employee turnover happens when an employee leaves for personal reasons or is terminated by the company. When the employee leaves, the company fills the vacant position by hiring a new employee. 

Are there different types of employee turnover? 

Yes, there are generally two kinds of employee turnover. 

How is employee turnover calculated? 

Here are the steps to compute a company’s employee turnover rate:

  1. Find out the average number of employees during the year. 
  1. Find the number of employees who left the company. Divide this number by the average number of employees during the year (you got this number in Step 1).
  2. Multiply this number by 100 to get the employee turnover rate in percentage form.

Or, another way to compute for employee turnover rate is by using this formula:

                                              Number of Employees Who Left Within a Specific Period 

                                               Average Number of Employees Within a Specific Period


Your company had 45 employees at the start of the year and 55 employees at the end of the year. Throughout the year, 5 employees resigned for personal reasons. What is your employee turnover rate?


45+ 55 = 100

100 ÷ 2 = 50 (average number of employees for the year)

5 ÷ 50 = 0.1

0.1 × 100 = 10%

Why is it important for businesses to measure employee turnover? 

Businesses can benefit from measuring and understanding their employee turnover. When an employer identifies the reasons why employees leave, they can address problems as necessary. Gaining clarity on employee turnover will lead to a healthier organization.

Try out Workstream to hire employees for
your business

A revolutionary hiring process for Hourly positions

A revolutionary hiring process for Hourly positions Hiring hourly staff in San Francisco can be a tough job. Workstream can help accelerate the process by letting you post on job boards like Indeed within seconds.

1-Click Job Posting

No more tedious copy and pasting. We integrate with all the top job boards. All applicants funnel into one intuitive dashboard.

Text-to-Apply Posters

Print out your unique QR code and text message number. Applicants scan/text to see all open positions and apply right away.

Automated & 2-Way SMS

Engage with applicants via text. Include links to screening questions, forms, and more. Use 2-way text to answer questions.

Endless Integrations

Connect Workstream to your calendar so applicants can schedule interviews. Streamline onboarding with background check & HR integrations.

Candidate Tracking & Scoring

View all your applicants and employees in one place. Make notes on their progress. Access their docs anytime from anywhere.

Customizable Templates

We provide templates for everything from job postings to offer letters. Send links to docs and tax forms via text message so new hires sign digital copies.

What other owners
think about hiring through Workstream

"By confirming the candidate's interest in real time, with the convenience of scheduling and reminding the candidate for appointments."

Alegre Home Care

Currently hiring on Workstream for:

Medical Surgical Tele RN

Home Care Aide Caregiver

Certified Nursing Assistant CNA

"Love you guys ♥️"

Willamette Valley Vineyards

Currently hiring on Workstream for:

Social Media Coordinator

Food Runner

Vineyard Operations & Development M...

"Great customer service and onboarding experience!"

Paleo Pet Goods and Pet Sitting Services