Voluntary Turnover Rate
Percentage
The percentage of employees who willingly leave the company, either by resignation or retirement, during a specified time frame.
High voluntary turnover can signify employee dissatisfaction or more attractive opportunities elsewhere. It's essential for companies to understand the reasons for voluntary exits to address potential shortcomings.
Formula
(Number of voluntary exits during the period / Average number of employees during the period) x 100
Example
In a company with an average of 500 employees during the year, if 25 employees resign voluntarily, the voluntary turnover rate is 5%.