Employee turnover rate
Employee turnover rate is the share of employees who leave a company in a given period, usually a year. It is calculated as the number of leavers divided by the average number of employees. In frontline work, annual turnover above 60% is common.
Every employee who leaves creates a vacancy. In frontline work, where people leave often, that means the hiring never stops. Turnover rate tells you how big that permanent hiring load is.
How do you calculate employee turnover rate?
Turnover rate = leavers in the period ÷ average number of employees × 100
- Count the leavers in the period: everyone who left, for any reason.
- Calculate the average headcount: the number of employees at the start plus at the end, divided by two.
- Divide and multiply by 100.
Example: a company with an average of 200 employees and 130 leavers in a year has a turnover rate of 65%.
Split the number to learn more:
- Voluntary vs involuntary. Did the employee leave or did the company end the contract?
- Early turnover. How many leave in the first 90 days? A high number points to a mismatch in hiring or onboarding.
- Per site or team. One location often explains most of the total.
How high is frontline turnover?
High. In the Aptitude Research Frontline Workforce Report 2026, 41% of US employers report annual frontline turnover above 60%. 22% report turnover above 80%.
The gap between job types is large. For non-skilled roles, 50% of employers report turnover above 60%. For skilled roles it is 31%. Retail and cleaning sit mostly in the first group.
What does turnover cost?
- Hiring again. Advertising, screening, interviews and onboarding, for the same job.
- Lost output. A new employee is not productive on day one. The National Restaurant Association puts the time until a new hourly restaurant employee adds more than they cost at 31.8 days.
- Pressure on the team. Open shifts go to the people who stayed, which can make them leave too.
Turnover rate vs retention rate
| Turnover rate | Retention rate | |
|---|---|---|
| What it counts | Employees who left | Employees who stayed |
| Typical question | How many do we lose? | How many do we keep? |
| Includes new hires who left | Yes | No, it follows a fixed group |
The two are not exact opposites. Retention follows the employees you had at the start. Turnover also counts new hires who left within the period.
How do you lower frontline turnover?
- Check fit as well as speed. Check schedule, travel time and shift needs in the screening, before the offer.
- Tell the truth about the job. A clear picture of shifts and pay prevents early leavers.
- Pay attention to the first weeks. Most early leavers decide in the first month.
- Ask leavers why. An exit question by phone or message gets more answers than a form.
How does Ringtime help with turnover?
Ringtime does not change why people leave. It helps your team keep up with the hiring that turnover creates.
- Ringtime contacts every new applicant within 5 minutes of applying, inside your calling hours.
- The AI assistant asks the questions that decide fit, such as shifts and start date, by phone or WhatsApp.
- Candidates at or above your pass mark move on, for example to a booked interview.
- The answers and the result land in the Ringtime web app and in your applicant tracking system (ATS).
For how this works at scale, see high-volume hiring.
To keep up with the hiring that turnover creates, see how Ringtime works for employers.
