Definition · Workforce planning and analytics
Voluntary Turnover
Definition
Voluntary turnover is the rate at which employees choose to leave an organization, by resigning or retiring, as a share of average headcount over a period. Involuntary turnover is the opposite: exits the employer decides, such as terminations and layoffs. Separating the two shows whether you have a retention problem or a hiring and performance problem.
Also called: Voluntary attrition, Quits, Voluntary separation rate, Resignation rate
Formula
Voluntary turnover rate (%) = Voluntary separations in the period ÷ Average headcount in the period × 100
- Voluntary separations
- Employees who left by their own decision: resignations, retirements, and usually job abandonment and failure to return from leave. Exclude internal transfers.
- Average headcount
- Start-of-period headcount plus end-of-period headcount, divided by 2, or the average of monthly headcounts for a year.
Worked example
A regional hospital system averages 3,200 employees over the year. 512 people resign, 64 retire and 96 are terminated or laid off. Voluntary turnover = (512 + 64) ÷ 3,200 × 100 = 18%. Involuntary turnover = 96 ÷ 3,200 × 100 = 3%. Total turnover = 21%.
Voluntary vs involuntary turnover
Total employee turnover mixes two very different things. Voluntary exits are people deciding to leave: a better offer, a bad manager, a schedule that stopped working, a move, retirement. Involuntary exits are the employer's decision: termination for performance or conduct, failing probation, layoffs, end of a fixed-term contract.
The fixes are different. High voluntary turnover points to pay, management, scheduling, workload or career issues. High involuntary turnover points to hiring and selection, onboarding and training, or performance management. A retail chain with 70 percent total turnover might find that 55 points are voluntary and mostly in the first 90 days, which is a different problem from one where 30 points are terminations for attendance.
How to classify exits
Classification sounds simple, but grey areas skew the numbers:
- Resignation in lieu of termination. Count as involuntary if the employee would otherwise have been terminated; many HRIS systems record it as voluntary by default.
- Job abandonment and no call no show. Usually voluntary, since the employee chose not to return, but some companies track it as its own category.
- Retirement. Voluntary, but report it separately; it is driven by demographics more than engagement.
- End of a temporary assignment. Exclude from employee turnover if the role was always temporary.
- Relocation of a spouse, return to school. Voluntary and usually unavoidable; useful to tag for analysis.
Use fixed exit reason codes and a short exit interview so the same exit is coded the same way at every site.
Benchmarks and context
The US Bureau of Labor Statistics publishes quits rates through its Job Openings and Labor Turnover Survey (JOLTS). The monthly quits rate across all nonfarm employers has generally run around 2 to 3 percent in recent years, which means annual voluntary turnover in the 25 to 35 percent range across the economy. It is much higher in leisure and hospitality and retail, and lower in government and finance.
Compare yourself with your industry, region and role type, not with an all-industry average. Frontline hourly roles commonly see voluntary turnover of 40 to 100 percent or more a year, while professional roles are often 10 to 15 percent.
Not all voluntary turnover is bad
Some voluntary exits are healthy: low performers who leave on their own, people moving to roles you could not offer, and turnover that makes room for internal promotion. What matters is who is leaving. That is why many organizations track regrettable attrition, the subset of voluntary exits the company wishes it had kept, alongside the overall rate.
Also look at timing. Voluntary exits within the first 90 days usually reflect a mismatch between the job as sold and the job as experienced. Exits at two to three years often reflect pay compression or a lack of career progress.
How to reduce voluntary turnover
- Fix early tenure. Realistic job previews, honest shift and schedule matching at offer, a structured first 30 days and a check-in in week 2.
- Look at managers. Segment voluntary turnover by manager. A few teams usually account for a large share of exits.
- Check pay position. Compare pay with local market rates for the role. In hourly work, a small gap to a nearby employer can drive quits.
- Offer schedule stability. Unpredictable schedules are a top driver of quits in retail, hospitality and contact centers.
- Build visible career paths. Internal moves keep people who would otherwise leave to grow.
- Ask before they leave. Stay interviews find problems while there is still time to fix them; exit interviews explain what already happened.
Frequently asked questions
What is the difference between voluntary and involuntary turnover?
Voluntary turnover is when employees choose to leave, through resignation or retirement. Involuntary turnover is when the employer ends employment, through termination, layoff or the end of a contract. Each points to different causes and fixes.
How do you calculate voluntary turnover rate?
Divide the number of voluntary separations in a period by average headcount for that period and multiply by 100. For example, 90 resignations with an average headcount of 600 gives a voluntary turnover rate of 15 percent.
What is involuntary turnover?
Involuntary turnover covers separations initiated by the employer, including terminations for performance or conduct, failed probation, layoffs and reductions in force. It is calculated the same way, using involuntary separations instead.
Is job abandonment voluntary or involuntary turnover?
Most organizations count it as voluntary, because the employee chose not to return. Some track it separately because it often signals early-tenure disengagement and needs its own fix.
What is a good voluntary turnover rate?
It depends on industry and role. Around 10 to 15 percent is common for professional roles, while frontline hourly roles often run much higher. Compare with peers in the same industry, region and job family.