This is the first line in an article about the fast food industry: “With the fast-food industry facing 150% annual turnover rates, brands are turning to Miso’s AI-powered kitchen robot, Flippy, to help increase profits…” How can you have more than 100% turnover? Thank you.
In: Economics
What you might be thinking about is *attrition*. Attrition cannot go over 100% because it represents positions that *don’t* get filled (e.g. layoffs, some retirements)
But because turnovers *can* be refilled, multiple people could hold the same position throughout that measured time period. It doesn’t help that many HR teams use turnover and attrition interchangeably, rather than differently as intended.
The formula for turnover is the number of people who left, divided by the average number of employees in that time period.
Annual turnover rate is what percentage of the staff leaves over the course of the year. If the staff size is 10, and 10 people leave and are replaced, the turnover rate is 100% (everyone left). If the staff size is 10, and in 6 months everyone has left and been replaced, then in the following 6 motnhs those people have left and been replaced, then the staff size is 10, and 20 people left, so the turnover rate is 200% (you replaced the staff twice in the year).
An annual turnover rate of 150% means that on average, staff stay for 8 months.
annual turnover is based on positions, not people, a position can have a replacement quit and have to hire for another within a year. if you only had one position, hiring two replacements in one year is 200% turnover, this is how it can go above 100%
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