The HR Capitalist: Ask the HR Capitalist - Calculating Annualized Turnover

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Ask the HR Capitalist - Calculating Annualized Turnover

April 17, 2007

Dear HR Capitalist -

We have some confusion at my company around how to calculate an annualized turnover rate. I would appreciate any help in this area.

Thoughts? - Xavier, West Coast HR

----------------------------------------------

Dear Xavier -

Annualized Turnover reporting can be confusing and is often disputed in companies large and small because it flares up emotion. By calculating Annualized Turnover, you are taking actual turnover numbers for a month or multiple months and "projecting" them out to an annualized rate. In doing this, you are saying words to the effect of "you had 2 terms this month, so your annualized turnover would assume you'll have 24 terms for the year". That kind of assumption projecting is at the heart of calculating Annualized Turnover, and it can drive the managers you serve crazy, especially if their department has a rash of terms early in the year.

To run a simple spreadsheet for Annualized Turnover, create the following:

Legend - (Column Number, Title of Column, Contents of Cells in Column)

Column A - Department/Location - List the entities in your org you want to track turnover for
Column B - FTE - List the number of Full Time Equivalents (employees) in each entity
Column C - YTD Terms - List the total number of terms for year to date
Column D - YTD Voluntary Terms - List the total number of voluntary terms for year to date
Column E - YTD Involuntary Terms - List the total number of involuntary terms for for year to date
Column F - YTD Annualized Turnover - **Formula of 'C4/(number of months to date in year)*12/B4'
Column G - YTD Annualized Voluntary Turnover - **Formula of 'D4/(number of months to date in year)*12/B4'
Column H - YTD Involuntary Annualized Turnover - **Formula of 'E4/(number of months to date in year)*12/B4'

**Columns F, G and H should be formated to show percentages with two decimal points

So that's the easy formula for Annualized Turnover. As you add months, you can do some simply modifications to your spreadsheet to add those in and alter slightly the formulas in Columns F, G and H to calculate the Annualized Turnover based on the number of months in your analysis. Most importantly, remember that you can get some heat from departmental leaders with high turnover early who think this method is less than accurate since you can't predict the future regarding turnover. Counter this objection early and often in your communications by noting that while some departments may take a lot of turnover early in the year, as things stabilize the number will gradually come down and arrive at the true number for the calendar year come December. On the other hand, those that sit at 0% turnover for 9 months may get a rash of terms in the 4Q.

Annualized Turnover metrics are useful, but not a cause for panic. That's why you have to be the communicator on the front end.

If anyone wants a template to work off of, shoot me an email and I'll send you a live one....

Posted at 06:13 PM in Retention, Talent | Permalink | Comments (144)

Comments

Hi KD,
On the "Calculating Annualized Turnover" you mentioned you would send a template to work off, would you please send me one?

Thank you,
Joyce Boom

Posted by: Joyce | April 27, 2007 at 01:39 PM

Hello KD,

Can I also get a template that you use on the annualized turnover? I think it would be very beneficial to me as I am a fairly new HR Supervisor.

Thanks,

Ila Baker

Posted by: Ila Baker | January 17, 2008 at 03:42 PM

I would love a template for turnover. Thank you much!

Leah Melton Boley RN
1-866-417-0324

Posted by: Leah Melton | February 25, 2008 at 10:43 AM

Thanks for the offer. Please shoot me the template for the annualised turnover.

Marty

Posted by: Marty | February 28, 2008 at 04:39 AM

I would reall appreciate a template for the annualized TO report. Thanks.

Posted by: Bilen Aynu | April 15, 2008 at 01:38 PM

Hi,
Could you shoot me a template as well?

Thanks a lot.

Vineet

Posted by: targus | April 15, 2008 at 04:07 PM

Please send the Annualized turnover template it you are still offering it. Thanks!

Posted by: Mary | April 16, 2008 at 11:47 AM

Please send me a copy.

Thanks

Posted by: geoff | April 17, 2008 at 08:52 AM

I would like a copy as well.

Thanks!

Posted by: swoods | April 25, 2008 at 02:12 PM

Can you please send me a template? Thank-you!!

Posted by: Erika McLee | May 28, 2008 at 11:07 AM

Xavier,

Can you please send me a template of the annualized turnover you said you have??

Thanks
Ila

Posted by: Ila Baker | July 17, 2008 at 01:02 PM

Hello if you still have that template I would like to have it. Thanks for the advice...very helpful.

Posted by: VALD | July 21, 2008 at 01:12 PM

I would like to receive the template, thanks in advance!

Posted by: pete | July 21, 2008 at 05:57 PM

I would certainly appreciated receiving a template. I think it could be very beneficial. Thanks!

Posted by: Carol | July 21, 2008 at 08:46 PM

Hi KD/Xavier,

Thanks for the advice. If you still have a template on hand, I'd love to get a copy. Also, do you know if determining Annualized Turnover would differ from determining First Year Turnover, specifically?

Posted by: Emily Hargrave | July 24, 2008 at 09:10 AM

Please share your template with me. Thanks.

Posted by: Glynnis | July 29, 2008 at 12:09 AM

Hi KD,

Could you please send me the template for the annualized turnover if you are still offering. Thank you.

Kim

Posted by: Kim | July 31, 2008 at 12:15 PM

If you are still offering...I'll take a template. Thank you!

Posted by: Heather | August 15, 2008 at 05:43 PM

Could you please send me the TO template? Thanks!

Posted by: Claire | August 18, 2008 at 10:16 AM

Would you please send me the turnover template as well? Thank you!

Cathy

Posted by: Cathy | August 26, 2008 at 06:42 PM

please send me the template. thanks.

Posted by: Janine | September 10, 2008 at 10:19 AM

Please send me the template, I am new to calculating turnover rate within our department - thanks!

Posted by: Emilia | September 24, 2008 at 02:49 PM

Would I be able to grab the template as well, I dont think we are doing it correctly.

Thanks a million
Belinda

Posted by: Belinda | November 06, 2008 at 08:01 PM

Belinda -

You bet. I'll send it to you via email...

Thanks - KD

Posted by: KD | November 06, 2008 at 08:56 PM

Hi KD,Xavier

Could you please send me the template for the annualized turnover if you are still offering. Thank you.

Gina

Posted by: gina | November 13, 2008 at 09:42 AM

Hello KD,

If it's not too late, can you shoot me a template as well?

Thank you,
Pamela

Posted by: Pamela | November 13, 2008 at 01:18 PM

Can you comply with one more template request? I appreciate your help for so many of us. Thanks in advance,

Posted by: mary | November 17, 2008 at 11:52 AM

Please send me a template as well.

Posted by: Ashok Raman | November 17, 2008 at 06:01 PM

Could you send me the template for the annualized turnover? It would be a excellent tool to calculate our turnover.
Thank you.
Marcus

Posted by: marcus saldana | November 20, 2008 at 07:52 AM

Me too!!!! Thanks so much!

Posted by: amy | December 07, 2008 at 08:14 PM

Hey Kris

Could you shoot me that template, I'd appreciate the help (been tearing my hair out over how to best calculate this...)

-Martin

Posted by: Martin Burns | December 08, 2008 at 09:51 AM

I read your turnover rate article and would like a template. Thanks!
Brenda

Posted by: Brenda Richie | December 09, 2008 at 01:01 PM

Could I please get in on that template, too?
Helen

Posted by: Helen Luketic | December 10, 2008 at 01:13 PM

will you plz send me the annual turnover calculation template.
appreciate your cooperation & support.

Posted by: [email protected] | December 31, 2008 at 12:30 PM

Xavier, good reply on calculating turnover. This is an area that many have a difficult time grasping. Can you please send me your annual turnover calculation template? I appreciate you!

Thanks

Posted by: Mark Summers | January 06, 2009 at 11:07 AM

Could you please send me the template for the annualized turnover if you are still offering. Thank you.

Danita

Posted by: Danita M | January 14, 2009 at 10:45 AM

Could you please send me the annualized turnover template Thank you

Posted by: Pam Keenan | January 28, 2009 at 06:05 PM

Hi. Could you send me the annualized turnover template? I'm also having questions regarding calculating monthly turnover. I use terminations for the month divided by the beginning of the month headcount but some are telling me I should use the terminations for the month divided by the end of month headcount. Am I missing something?
Many thanks,
Andrea

Posted by: Andrea Cariou | February 01, 2009 at 12:16 PM

Can you please send me your annual turnover calculation template it sounds very helpful? Thank You!

Posted by: Rose Mary | February 11, 2009 at 09:46 AM

Hi there

Are you able to send me your turnover rate template?

thanks
Darla

Posted by: Darla K | February 17, 2009 at 12:31 PM

I'm in the midst of performing the first annualized turnover rate for my organization. I would greatly appreciate the template you referenced if it is still available.

Thank you in advance,

Brenetia

Posted by: Brenetia Adams-Robinson | March 02, 2009 at 05:02 PM

I would love a copy of the template. I think I am doing something wrong.

Thanks for your help

Shirley Kapnis

Posted by: Shirley Kapnis | March 14, 2009 at 09:36 AM

Hi KD,
By any chance are you still able to send a copy of your annulaized turnover template? I could definitely put it to good use and certainly appreciate the sharing.

Many thanks.

regards,
Sam Loh

Posted by: Account Deleted | March 19, 2009 at 10:32 AM

KD - appreciate if you can send me a copy of the annualized turnover template too. Thank you very much.

Posted by: tsho | May 17, 2009 at 09:42 PM

tsho,

Can you send me the templete too? Thanks

Posted by: Syd | May 18, 2009 at 11:19 AM

Please send copy of Annualized Turnover template. Thank You.

Posted by: Gene | July 05, 2009 at 10:10 PM

Please send me a copy of annualized turnover template. Great info in article - thanks!

Posted by: Arlynn | July 09, 2009 at 03:53 PM

Hello, Can you please explain your methodology for this formula?

Posted by: Melissa | July 16, 2009 at 09:34 AM

Please send me a copy of the annualized turnover template. Thanks!

Posted by: Jen | July 21, 2009 at 11:58 AM

A template would be extremely helpful, can you send me a copy.

Thank You,
Jim

Posted by: Jim | July 21, 2009 at 07:27 PM

Could you send me a copy of the turnover template? Thanks.

Posted by: Tricia | July 31, 2009 at 10:37 AM

Hi there,

Can you please send me a copy of this template?

Thanks in advance.

Posted by: Modeeha | August 10, 2009 at 12:48 PM

I'd love to have a template for turnover please.

Thank you,
Alison

Posted by: Alison | August 11, 2009 at 05:08 PM

Is the template still available?

Posted by: Tony | August 12, 2009 at 02:01 PM

Hi KD,

I am working on a research paper comparing the turn over rate of companies with training and devlopment plans vs. those without. My thought is that the companies with corporate training plans will have lower turnover rates than those without.

If you could send me your template it would be greatly appreciated.

Thank you,

Amber

Posted by: [email protected] | August 26, 2009 at 11:05 PM

Please send a copy of the template for the annualized turnover.

Thank you

Posted by: [email protected] | September 01, 2009 at 08:29 AM

Hi KD,

I would like a copy of the annualized turnover template.

Thanks
Kelly

Posted by: Kelly Cheong | October 29, 2009 at 02:32 AM

Hi,

Would greatly appreciate if you could send me the template.

Thanks
Kelly

Posted by: Kelly | November 02, 2009 at 04:24 AM

Hi KD,

Can I please get a copy of the turnover template.

Thank you so much. Wish I could talk to you since my company is doing something similar (and I don't understand it).

(Turnover Rate)*52/37 where 52 is number of weeks in year and 37 is the payroll week that the report is being run in. I don't know if it is valid...I've been doing turnover for years....but not like that.

Thanks,
Kim

Posted by: Kim Norris | November 10, 2009 at 02:05 AM

Can I please get the template that you speak of? Thanks, Ann

Posted by: Ann | December 31, 2009 at 08:08 AM

Template please...and thanks so much for sharing!

Posted by: [email protected] | January 29, 2010 at 01:11 AM

Hi Kris,
Wondering if I could get a copy of the template? I need to create a rolling 12-month report.
Thanks!

Posted by: Jeanette | February 11, 2010 at 12:29 AM

Can you send me a copy? Thank You.

Posted by: lv | March 15, 2010 at 03:47 AM

I know that this post is a little bit old but my company is still struggling to find a good formula to calculate annualized turnover. Could you please send me a template as well?
I would really appreciate it.
Thanks,
Ana

Posted by: Ana Montes | April 27, 2010 at 11:37 PM

Hi Kris, I found this post in a google search and could really use the template! I am a huge fan (if that helps :)

thanks!

Posted by: Jennifer Ricci | June 25, 2010 at 02:46 PM

I too would love to have your template! Thanks so much!
Deb Roush

Posted by: Deb Roush | June 30, 2010 at 05:35 AM

Hi all,
I would also love to have your template. I am in the middle of analysing turnover for my company.
Thank you very much!

Posted by: Helena LLoret | July 23, 2010 at 03:55 AM

I would appreciate a template also.

Trudi

Posted by: Trudi H | July 27, 2010 at 01:13 PM

trudi - don't have your email, so if you'll send me that by commenting again (your email will be hidden), I'll get it over to you...

Thanks - KD

Posted by: KD | July 30, 2010 at 03:55 PM

Would love your template!

Thanks, AA

Posted by: Amy Accettura | August 03, 2010 at 03:00 PM

I would also appreciate your template.

Thanks much
Sara

Posted by: [email protected] | August 11, 2010 at 04:00 PM

Great information, please email me a turnover template for use. Thank you.

Posted by: MM | August 16, 2010 at 03:55 PM

Please send me a copy of the template

Posted by: Wendy Curtis | September 16, 2010 at 01:43 PM

If the template is still available, I would really appreciate a copy. Please send at your convenience.

Thanks,
Amber

Posted by: Amber Wilbanks | October 14, 2010 at 10:13 AM

If the template is still available, I would really appreaciate a copy. Please send as soon as you can.

Thanks,
Cherie
401-720-0080

Posted by: Cherie Hersperger | October 26, 2010 at 02:15 PM

I would love to get a copy of your template if it is still available. Thank you so much!

Thanks,
David B

Posted by: David Bailey | December 07, 2010 at 03:20 PM

I would like a copy of your template if still available.
thanks

Sean H

Posted by: sean hefferon | January 20, 2011 at 09:58 PM

I would like a copy of your template if still available.

thanks
Cydney

Posted by: Cydney | January 26, 2011 at 03:00 PM

May i get a copy of the template pls thank you

Posted by: Mita Benitez | February 01, 2011 at 07:37 PM

I would like a copy of the turnover template. Thanks!

Posted by: vh | February 16, 2011 at 08:42 PM

I would like a copy of the template. What do you recommend if not annualized turnover.

Posted by: Lyn | February 17, 2011 at 03:48 PM

May I have a copy of the template too.

Posted by: Marni Luchsinger | February 18, 2011 at 11:00 AM

If the template is still available, may I have a copy? Thank you!

Posted by: J. Gorman | February 22, 2011 at 01:08 PM

May I get a copy of the template.
Thank you.

Posted by: JR | March 16, 2011 at 05:16 PM

Please send a copy of this template when you get a chance.

Thanks!

Posted by: Earl Meininger | March 17, 2011 at 10:28 AM

please send me a copy of the template! thank you soo much!!!

Posted by: thuy | March 29, 2011 at 08:38 PM

May I have a copy of the turnover template? Thank you.

Posted by: Amanda | April 01, 2011 at 10:25 AM

Hi,
This is popular template, I am in need of it also.

Posted by: Tanya | April 19, 2011 at 12:24 PM

Hello, count me in too please...a copy of your turnover templete.

Posted by: Trudy Billion | April 19, 2011 at 02:42 PM

Templete please please please. Thank you so much!!!!1

Posted by: Stephanie | May 02, 2011 at 08:00 PM

Can you also send me the template?

Posted by: Janet Uyenco | May 23, 2011 at 01:38 PM

Hello, could i please get a copy of the templete as well?
Thanks heaps!

Posted by: Sara | May 30, 2011 at 09:45 PM

Please send me the template for the turnover report. Thanks.

Posted by: Kyle | June 05, 2011 at 01:02 AM

Hi KD,

Can you please send me a template for the turnover report?

Thanks,

Posted by: Ori | June 08, 2011 at 12:10 PM

Hi KD,

Can you please send me a template for the turnover report?

Thanks,

Posted by: Sarah | June 08, 2011 at 06:28 PM

Hi KD,

Can you please send me a template for the turnover report?

Thanks,
Barb

Posted by: Barbara Tulley | June 16, 2011 at 10:54 PM

Hi... Great explanation! Can I hv a copy of the template too? Thanks!

Posted by: Kua | June 30, 2011 at 04:05 AM

Make your own life time more simple take the loan and everything you want.

Posted by: IngramKari34 | July 01, 2011 at 04:24 AM

Hi KD,

On the "Calculating Annualized Turnover" you mentioned you would send a template to work off, would you please send me one?

Ana

Posted by: Ana Carreno | July 05, 2011 at 01:48 PM

Hi KD,

This is great information. Can you please send me a template for calculating the annualized turnover?

Thanks

Posted by: Rosalind | July 14, 2011 at 02:43 PM

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