SHRM/ANSI formula · Benchmark context · Retention rate · All client-side
Measurement Period & Inputs
The formulas used are the industry standards published by SHRM (Society for Human Resource Management) and endorsed by ANSI (American National Standards Institute). They are the same formulas used by the Bureau of Labor Statistics (BLS) for its Job Openings and Labor Turnover Survey (JOLTS).
Turnover rate uses average employees (beginning + ending ÷ 2) as the denominator rather than beginning headcount alone. This accounts for workforce size changes during the period — a company that grew significantly during the year should not report turnover against only its starting size.
Retention rate measures the proportion of original employees who remained through the entire period, excluding new hires who joined mid-period. It is not the inverse of turnover rate and the two will not sum to 100%.
Benchmarks are sourced from BLS JOLTS annual data and SHRM research. The U.S. average annual turnover rate is approximately 18% per BLS. All outputs are estimates — actual figures will vary based on how separations are defined within your organization.
SHRM: How to Determine Turnover Rate ↗
BLS: Job Openings & Labor Turnover Survey ↗
This tool produces estimates based on your inputs and published benchmarks. Actual costs and rates will vary. Not a substitute for a detailed HR audit or professional advice.