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New Business Owners and the Employee Turnover Rate

Updated: Apr 25

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Startup business owners do not fully understand what the Employee Turnover rate is or have never heard of it. Employee turnover rate is the percentage that the company losses employees. The higher the turnover rate the more profits a company loss; the lower the turnover rate the better for employees and business profits.

The employee turnover rate enables a company to understand why employees leave a company either voluntary or involuntary. However, this cannot be understood by a business owner unless the owner knows how to calculate the employee turnover rate and know what to do with it. Question is how a business owner calculates monthly employee turnover rate. Employee monthly turnover rate is calculated by the: Employees who left in a month divided by the average number of employees in a month times 100.


Number of employees who left in a month equals 5

Average number of employees 10

Employee Calculation Rate: 5/10= .50

.50x100= 50%

Of course, this is fifty percent of your employees that are leaving monthly, at 10 employees, that’s sixty (60) employees a company loss a year out of 120 employees. An acceptable employee turnover rate is 19% and below. If a company’s employee turnover rate is 19% and below profit will stay great. However, when the employee turnover rate goes above 19% a company is losing profits. Revenues are not profits. Profits is what is left over after all business expenses are taken out. Most employers see that they are losing employees monthly or often must most are looking have not figured out how to keep their employees.

eFokkus is a Employee Retention/Employee Engagement company that helps frustrated business owners retain their employees while keeping more of their profits. We provide free consultation to all business owners regardless especially for restaurants. It’s your business what do you choose? Less employees and less profit for steady employees and more profits? We can help you today contact for a free consultation today.

Book an appointment for a free consultation today to find out how eFokkus can save you money to increase your profits by consulting your company on leadership. Don’t go about it alone, you're not an employee specialist! You will not regret that you made the decision to book a consultation.

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