How to Calculate Turnover Rates
How to Calculate Turnover Rates
Using the example in How to Use a Turnover Tracking Spreadsheet, the driver turnover for the threemonth period of December 2011 to February 2012 is five drivers.
Here’s how you measure the turnover rate*.
Turnover Rate =
Total number of drivers who left the company
X 100
Total number of drivers on the payroll
Turnover Rate =
5 (4 drivers quit + 1 driver fired)
X 100 = 20%
25 (total number of drivers on the payroll)
How to Estimate the Annual Turnover Rate
Next, here’s how to estimate the annual turnover rate based on this period:
Estimated Annual Turnover Rate = Turnover Rate in one period X Number of periods per year
Estimated Annual Turnover Rate = 20% X 4 = 80%
In reality, turnover rates can change significantly during the year. The estimated annual turnover rate
is exactly that — an estimate. Turnover rates need to be tracked and measured regularly to be of any
benefit. As you begin to measure turnover, you will likely be able to see trends and patterns.
*One simple calculation is to take the number of T4’s issued for the previous year and divide that number by the total
number of employees on payroll on December 31st.
___________________________________________________________________________________________________
Excerpted from Your Guide to Human Resources: Practical Tips and Tools for the Trucking Industry.
For more information visit www.apgst.ca
How to Calculate Turnover Rates – Trucking
1