Overview
The Annual Turnover Rate helps users see how many employees have left a company over the past year compared to its most recent workforce headcount. Available in the Company Analytics report for the US, UK, CA, and Global datasets, it offers a quick, directional snapshot of turnover using external data. This metric is especially useful for benchmarking companies against one another.
Methodology
The Turnover Rate is calculated by dividing the number of employees who left the company during the 12 months leading up to the most recent headcount snapshot by that same headcount value.
Departures (numerator): Profiles whose most recent company end date falls within the 12 months prior to the latest headcount snapshot date.
Current Headcount (denominator): Profiles actively associated with the company as of the snapshot month.
For example, if the most recent employee count is taken as of March 2025, we look at departures from April 2024 through March 2025. This ensures that both the numerator (departures) and the denominator (employee headcount) are anchored to the same reference point in time.
By aligning both values to the same period, this method provides a consistent, directional estimate of annual turnover based on external profile data, rather than live internal HR systems.
What this means
Because this metric is based on external profiles, it may differ from internal HR-reported attrition rates. It captures voluntary and involuntary departures visible in the external labor market, and does not take into consideration whether or not the role was backfilled. This helps highlight a company’s retention patterns from an outside-looking-in approach.
While it doesn’t explicitly account for new hires or internal transfers, it serves as a practical proxy for understanding movement in and out of an organization, especially when HR data isn’t available.
Key considerations
The Annual Turnover Rate is meant to be a directional indicator, not an exact internal audit. It should be used to compare companies side-by-side or benchmark your own company to rather than as a strict point-in-time turnover percentage.
If you’d like to analyze turnover in more detail (such as an occupation or location), additional filters can be applied to break down the data further.