## Early turnover

Measures the turnover rate for employees who leave within their first year of employment.

Calculation steps:

1. Choose the reference period
2. Identify the employees that left
3. Calculate for each employee the number of days of employment
4. Cluster employees in categories. Most common categories are:
5. less or equal to 30 days of employment - 30 days turnover
6. between 31 and 60 days of employment - 60 days turnover
7. between 61 and 90 days of employment - 90 days turnover
8. between 91 and 180 days of employment - 180 days turnover
9. between 181 and 365 days (1 year) of employment - first year turnover
10. Apply the turnover formula for the desired category

Early turnover is considered to be extremely costly for a company. To be able to better understand where the cause lies it is advised to make the above categories. For example 30 days turnover can denote a recruitment issue, whereas the 60 or 90 days turnover can denote a onboarding issue or a manager issue.

For clarity the number of days should be expressed in calendar days.

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Example:

Chosen time frame: 1 year

Average number of employees in the reference period: 100

No. of employees that left during the chosen time frame: 50 out of which

• 10 employees had more than 1 year tenure
• 20 employees had 180 days of tenure
• 10 employees had 90 days of tenure
• 10 employees had 20 days of tenure

We have a total of 40 employee who left before having 1 year of employment.

So, Early turnover would be: (40/100) x 100 = 40%

Clarification:

Tenure (days of employment) is calculated by subtracting the hire date from the last day of employment.

If the last day of employment for an employee is 21st of August and the hire date is 1st of August than:

tenure = 21st of August - 1st of August = 20 days => this employee left within his first 30 days of employment

Tenure can also be expressed in months but for clarity and easier calculation we advise using days.

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