What is Employee Growth Rate?

Employee growth rate is a business metric that measures the percentage change in a company’s headcount (total number of employees) over a specific period of time. It is calculated by comparing the amount of employees at the beginning and end of the period. A positive growth rate indicates an increase in employees, while a negative growth rate reflects a decrease, such as downsizing, layoffs, or high turnover.

Depending on the needs of an organization, employee growth rate can be measured at the beginning and end of a quarter, a year, five years, or more.