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Employee Turnover Rate Formula
Turnover Rate = Employees Separated / Average Headcount × 100
Average Headcount = (Start HC + End HC) / 2
Industry Benchmarks
| Industry | Average Annual Turnover |
|---|---|
| Tech / Software | 10–15% |
| Finance / Insurance | 10–15% |
| Healthcare | 15–25% |
| Retail | 25–60% |
| Food & Hospitality | 50–75% |
| Staffing agencies | 100%+ |
The Real Cost of Turnover
SHRM (Society for Human Resource Management) estimates replacement costs range from 33% to 200% of annual salary, depending on the role:
| Role | Replacement Cost |
|---|---|
| Entry-level / hourly | 33–50% of salary |
| Mid-level contributor | 50–100% of salary |
| Senior / specialized | 100–150% of salary |
| Executive / C-suite | 150–200%+ of salary |
Costs include: job postings, recruiter fees, interview time, lost productivity during vacancy, onboarding time, and new-hire ramp-up.