Employee Turnover Rate
The percentage of employees who left the MSP over a year, voluntarily or not.
Formula
Employees who left ÷ Average headcount × 100
Why Track It
Every technician who leaves takes client knowledge and months of ramp-up cost with them. Rising turnover shows up in SLA attainment and CSAT a quarter later.
How It Is Measured
Count employees who left in the trailing twelve months. Divide by average headcount over the same period (start plus end, divided by 2). Report voluntary and involuntary separately, and technicians separately from other roles. Source: HRIS or payroll.
Constraints
It treats every departure the same, whether a poor performer or a key engineer. Small MSPs need several years of data before the rate means much.
Measurement Note
LogMeIn considers turnover below 15% healthy for MSPs. A small team makes the percentage jump on a single departure, so read the names as well as the rate.
Referenced In
Related KPIs
More in People
How productive, stable and engaged the team is. These numbers show whether the MSP has the right headcount and whether it is burning out the people who deliver the service.
- Employee Net Promoter Score (eNPS)Operations Manager
- Service Multiple of WagesService Manager
- Service Revenue per EmployeeOwner
- Technician Billable UtilizationService Manager