Turnover refers to the rate at which employees leave an organization and need to be replaced. It is a critical metric used to assess workforce stability and can be categorized into two types: voluntary turnover, when employees choose to leave, and involuntary turnover when employees are terminated by the organization.

Example
Suppose Company X had 100 employees at the beginning of the year, and 20 employees resigned or were terminated during that year. The turnover rate for Company X during that period would be calculated as follows:

Turnover Rate =
(Number of Employees Who Left/ Total Number of Employees at the Beginning of the Year) × 100

In this case, the turnover rate would be (20/100) x 100 = 20%.