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Ask the HR Capitalist - Calculating Annualized Turnover

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....



Doreen Kephart

Hi Kris - looks like this has been a lively post for some time! Could I also have a copy of the template if you are still sending? Thanks!

jeff schlosser

Just got on your mailing list. Great info, can you send me the template for annualized Turnover?
Thanks : - )


Why would you use FTE instead of headcount to calculate turnover. Can 50% of a person leave the company, if they work 50% of the time?

I reviewed this as I was interested in whether companies include fixed term contractors, who voluntarily resign before the end of their contract.
Thoughts on their inclusion?


Hey Donna -

The FTE number is actually less important than you think. Since headcount numbers fluctuate over time, you actually have to simply figure out a consistent time you're going to add up all the FTEs in the organization, or do an average for the month in question. Good question, but it's to micro for how a macro tool like this is used....


Hi KD,

Can I get your "Calculating Annualized Turnover" template please. Thanks.


Rebecca Geyer

Would love a copy of the template for calculating annualized turnover please!

Many thanks,

Susan Bridges

Thank you for the article - very powerful. Would you mind sharing your template?


Eviction Notice

Although annual turnover is a good way to inspect the average time horizon a fund employs and basically the concept of adjust for the inflow and outflow of cash and reports, I was just curious about the template to calculating the annualized turnover.

Samuel Abrokwa

Hi KD,
Could you please send me a template?


This is great; can you please send me this template?


Frank Davis

Hello, can you send me a copy of the Template for calculating the annualized Turnover?



Hi KD,
Would you please send me a template?


Can you send me the template?

Shari Filsinger

Hi KD,

If your template is still available, could you please send it to me? Thanks!


Hi there,

Can you send me a copy? Thanks

Connie Cummins

Please send us a copy of the Turnover Template .

Thank you ,

Connie Cummins
Leprekon Food Corporation

Beverly Mangus

Great Information, would you please send me a template for calculating, if it is still available? Thank you!


Please send me a template for annualized turnover. That would be terrific. Thank you.


Can I please obtain a copy of the annualized turnover rate?

Thank you much!



Hi KD,

Thanks for posting. I was wondering if you could you please send me a template as well?


Hello Kris,

I would love it if you could send me a copy of the turnover template.

Thank you!

michael moran

could you send me the template if you get a chance? thanks.

Mike Moran


Hello KD,

Please kindly email me a turnover template.

Thank you,



Can you please send me a template as well for calculating the annualized turnover? Thanks



Please help me to calculate the turnover %
I have 45 staff and from Jan to July 2012, we have recruited 7 new staff.
From April, May, June & July 2012 - each month there was a staff resigned

What is the % of turnover based on the above scenerio?

Thank you so much....


Hi KD,

Thanks for the information. Could you also send me a copy of the template for calculating annualized turnover?

Thank you.




If the template is still available could i get a copy of it? Thanks!

jo burnison

great explanation,Kris. is the template still available? if so, i would love a copy.


Aurie Chidziva

Would you be able to send me the template?

leena Shah

Can you please send me the template

Thank you

Lori Rodriguez

I would like a copy of your live template

Edem Kodjo

Dear KD,
Thanks for the offer. Please shoot me the template for the annualised turnover. Just want to try how it works. Getting quite confused.

Howard Shure

Hi KD. If your still taking requests I would appreciate a copy of the template as well.

Thank you!

Prabhakar Mishra

Hey could you please send the copy of template to me as well .... Thanks a ton :)



Can I get the Template?

MIchael Turner


Do you still have this Turnover Template. Would like a copy if possible.

Danielle Clements

Can you please send me a template of the annualized turnover if you still have that available? Thanks!!

Jen Mattia

Is there anyway you could send over this template to me?

Marka Branson


Will you please send me the template for calculating annualized turnover?

Thank you!

junelly perez

Hi, Can you please send a template of employee retention rate?


Hi I dont see your email but would love to get the template thanks.




Hi KD,

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



Hey man, how would you annualize quarters? *4 /turnover rate?

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