Involuntary Termination Rate
Percentage
The percentage of employees who were let go or terminated for reasons other than voluntary resignation or retirement during a specified time frame.
A high involuntary termination rate can indicate potential issues in recruitment processes, training, or workplace culture. It also affects morale and can have financial implications due to severance and replacement costs.
Formula
(Number of involuntary terminations during the period / Average number of employees during the period) x 100
Example
If a company with an average of 500 employees over the year had 10 involuntary terminations, the rate is 2%.