Which metric is represented by the formula: (number of employees who have left / average number of employees) × 100?

• A. Turnover rate
• B. Absenteeism rate
• C. Retention ratio
• D. Hiring rate

Answer: (A)

This formula is used to measure turnover rate—the speed at which employees leave a company. It takes the number of departures during the period and divides it by the average number of employees over that period, then multiplies by 100 to express it as a percentage. Using the average headcount accounts for changes in staff during the period, giving a stable view rather than just the start or end headcount.

For example, if 12 employees left in a year and the average headcount was 240, the turnover rate would be (12/240) × 100 = 5%. This metric is different from absenteeism, which tracks days employees are absent rather than whether they leave; it’s also not the retention ratio or hiring rate, which relate to keeping current employees or bringing in new ones, respectively.