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KPI · HR

Voluntary turnover rate: formula and example.

Voluntary turnover rate is the percentage of employees who leave on their own initiative, measured against the average headcount. Dismissals, retirements and fixed-term contracts that end are excluded. It is the turnover figure that says the most about management, culture and terms of employment.

Voluntary turnover rate formula

Number of voluntary leavers in the period ÷ average headcount × 100%

Worked example

Of the 18 people who left Acme Groothandel in 2025, 12 resigned. With an average headcount of 144, the voluntary turnover rate is 12 ÷ 144 × 100% = 8.3%.

Fictitious figures for Acme Groothandel, a sample wholesaler.

How to read this KPI

A higher rate means more people are choosing to leave. Break it down by department, manager and length of service: many leavers in the first year point to recruitment or onboarding, while experienced people leaving point more to career prospects or pay. Compare with previous years and read exit interviews alongside the figure.

Pitfalls with voluntary turnover rate

  • Not recording leaving reasons consistently, so voluntary and involuntary departures get mixed up.
  • Counting departures by mutual agreement as voluntary without agreeing that rule.
  • Breaking it down by manager for small teams, which makes individual leavers and their reasons identifiable.

SQL & DAX

Calculating voluntary turnover rate in SQL and DAX

Two examples on a fictitious data warehouse for Acme Groothandel: a PostgreSQL query and a measure for a Power BI model. Adjust table and column names to your own model.

SQL · PostgreSQL
WITH avg_hc AS (
  SELECT AVG(n) AS n
  FROM (
    SELECT m, COUNT(e.employee_id) AS n
    FROM generate_series(DATE '2025-01-01', DATE '2025-12-01', interval '1 month') AS m
    JOIN employees e ON e.hire_date <= m AND (e.termination_date IS NULL OR e.termination_date > m)
    GROUP BY m
  ) s
)
SELECT COUNT(*) FILTER (WHERE e.termination_reason = 'voluntary') AS voluntary_leavers,
       COUNT(*) AS all_leavers,
       ROUND(100.0 * COUNT(*) FILTER (WHERE e.termination_reason = 'voluntary') / NULLIF(MAX(h.n), 0), 1) AS voluntary_turnover_pct
FROM employees e
CROSS JOIN avg_hc h
WHERE e.termination_date >= DATE '2025-01-01' AND e.termination_date < DATE '2026-01-01';
DAX · Power BI
Voluntary Leavers =
CALCULATE ( COUNTROWS ( Employees ), Employees[TerminationReason] = "voluntary", USERELATIONSHIP ( Employees[TerminationDate], 'Date'[Date] ) )
Voluntary Turnover % =
DIVIDE (
    [Voluntary Leavers],
    AVERAGEX ( VALUES ( 'Date'[YearMonth] ), VAR d = CALCULATE ( MAX ( 'Date'[Date] ) ) RETURN COUNTROWS ( FILTER ( ALL ( Employees ), Employees[HireDate] <= d && ( ISBLANK ( Employees[TerminationDate] ) || Employees[TerminationDate] > d ) ) ) )
)

In ENABLE

Tracking this KPI in ENABLE

Plain-language questions

Ask for voluntary turnover rate per month, customer or product in the SQL Explorer with AI. The AI writes the SQL, you see the query and run it yourself; the AI only receives metadata.

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In your Power BI dashboard

Define the KPI as a measure in your Power BI model and show it in the portal, with "Last refreshed" next to it. Access profiles and optional row-level security decide who sees which figures.

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Custom dashboards (pilot)

Add the KPI as a tile to a custom dashboard, compared with last year. The Dashboard Builder is a pilot and can be switched on per client.

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Monthly targets

With the built-in Targets app you set a target for the KPI per month, so you see actuals and target side by side.

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FAQ

Frequently asked questions

How do you calculate voluntary turnover?

Divide the number of employees who resigned by the average headcount for the period and multiply by 100%. This means you need a recorded leaving reason for every leaver. Retirements and fixed-term contracts that end are not counted.

What is the difference between voluntary and involuntary turnover?

In voluntary turnover the employee decides to leave; in involuntary turnover the employer does, for example through dismissal or restructuring. Voluntary turnover is usually the figure you manage on, because it reflects how attractive you are as an employer.

How can you reduce voluntary turnover?

Start by finding out where and why people leave, using the figures per department and exit interviews. You can then work on onboarding, management, development or pay in a targeted way. Measure the effect by tracking voluntary turnover over several quarters.

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