The turnover rate is a measure used to indicate the percentage of employees who leave a company over a specific period, typically a year. It helps organizations understand how frequently they need to hire new staff. A high turnover rate may suggest issues such as low job satisfaction or poor management, while a low rate often indicates a stable workforce. To calculate the turnover rate, divide the number of employees who left during a period by the average number of employees, then multiply by 100. This metric is important for businesses, as it can impact productivity and overall company culture.