Annualized vs Non Annualized Turnover

This article will talk about the difference between Annualized and Non Annualized Turnover rate

Turnover: # of terminations in a selected time period / (average active headcount in selected time period)

 where average active headcount = Average number of active employees over a specified time period.

Turnover Rate: Total number of terminations in a given time period, divided by the average active headcount in that same time period

Turnover Rate Annualized: Annual turnover rate if your turnover continued at the same rate as the selected time period

 Annualization is applied when the selected time period isn't a full year. It is applied by taking the turnover rate and multiplying it further by the following formula:

 12 / (# of months in the selected time period)

therefore, the full formula is:

(# of terminations in a selected time period / (average active headcount ) in selected time period) X 12 / (# of months in the selected time period)