Employee Turnover: Definition & Calculation

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What is Employee Turnover?

Employee turnover is a term that refers to the cycle of hiring and firing that takes place within a company at a given time. The employees leaving could be either voluntary or involuntary. However, a higher employee turnover rate could have bad effects on the company. It is calculated by dividing the number of employees resigned or terminated in a month by the average number of active employees in the same month and multiplying the quotient by 100.

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