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Employees Turnover Rate with Pivoted Length Normalization

Continual evaluation of performance is crucial to the success of any business. These evaluations are measured using key performance indicators (KPIs), and different kinds of KPIs are widely used in various business fields. A company or business with multiple departments needs to evaluate the performance of each department manager because it affects the entire company. Turnover rate is a metric that shows the ratio of employees leaving a company, and a typical formula for it exists, but the formula is not fair when there are multiple departments with different sizes in a company. In this paper we have introduced, Pivoted Length Normalization to be used to normalize the turnover rate. Additionally, the normalized turnover rate depends on both company and department sizes, and it is more equitable. We have examined the normalized value of turnover rate with its initial value in departments of different sizes to show the fairness of the proposed method.