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Annualized turnover


It’s one way of predicting how will the employee turnover rate will look like at the end of the year based on the turnover rate that happened so far. 



Calculation steps:

  1. choose a time frame
  2. calculate the employee turnover rate for the chosen time frame
  3. calculate the number of months within the chosen time frame
  4. apply the annualized turnover formula




Example:

Time frame: 1st of January to 31st of March

Turnover rate for time frame: 15%

Months within the chosen time frame: 3 months (Jan, Feb, March)


Annualized turnover = 15% x (12/3) = 15% x 4 = 60%

This metric goes on the assumption that all variables will stay the same during the next months.



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