What is a healthy turnover percentage, and how do you calculate it correctly?

[Elliee]

Leadership asked me to benchmark our turnover rate after a rough quarter, and I'm not sure what "healthy" looks like for our industry. You calculate it by dividing separations by average headcount, then multiplying by 100. Retail and hospitality typically run higher than tech or finance. What benchmarks or tools does your team use to put the number in context?

 

[Henry]

A healthy turnover rate is 10–20% annually. Calculate using: (employees who left ÷ average employees) × 100. Use average workforce size for accuracy, not starting or ending headcount alone.