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Calculation of Attrition Rate
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Calculation of Attrition Rate
Human Resources » Attrition and Retention


Chrm Message From: prashantthakkar Total Posts: 29 Join Date: 22/08/2006
Rank: Executive Post Date: 15/09/2006 12:54:16 Points: 145 Location: India

Dear Friends,

Can any one help me in understanding how attrition % is calculated. I'm trying to understand the process what we follow is as per industry or not.

We calculate as follows:

Formula : Attrition for the month/Total Headcount * 100

Ex : 3012 Headcount for the month (Last month Headcount 2812 + 200 new joinees) 65 resignations for the month.

65/3012 * 100 = 2.15% I'm not convinenced with the formula......

We recruit every month 200 - 250 members (continuous recruitment), should we include new joinees while calculating attrition % ? if so, we will not know correct % any time.

Regards,

Prashant Thakkar

 

Chrm Message From: hr.hitesh Total Posts: 22 Join Date: 22/08/2006  
Rank: Executive Post Date: 15/09/2006 12:56:59 Points: 110 Location: India

I guess attrition % is calculated as a Annualised figure. Hence, if you are calculating the Attrition rate (monthly) then the formula is Attrition for the month / Total Head count * 100 * 12

In your example the attrition rate (annualised one ) has to be 2.15*12 = 25.8 % (ho, i guess it is quite huge).

To test this formula, assuming 65 resignations per month is constant and that Head count of 3012 stands constant (i.e. 200 new joinees) every month, the total no. of resignations is 780 in a year. It accounts to 25.8 %. The same figure that you have obtained for the monthly annualised attrition rate.

Hope this gives some clarity to you.

Chrm Message From: sweta_hr12@yahoo.com Total Posts: 1 Join Date: 22/08/2006  
Rank: Beginner Post Date: 10/02/2009 01:09:12 Points: 5 Location: India

Hi Prashant,

Attrition in an organization simply refers to resignations in a particular month,quarter or year.To simplify it further, it refers to the number of employees who leave an organization.And formula for calculation fo attrition % is

Attrition%=(No. of Employees Quit) /(Avg. Employees during that time frame) %100

Inputs for computing Annualized Value is
Monthly – Multiply the Value by 12
Quarterly – Multiply the Value by 4
Half Yearly – Multiply the value by 2
Annual – Do not multiply :-)

Just to elaborate with example with respect to data shared below is:

If in a month there are 65 no. of quit cases and average no. of emp strength till date was 3012 then:

Attirition%YTD=65/3012*100=2.15% hence,monthly attrition %(YTD) for that month will be 2.15%*12=25.8%

Hope this clarification will help you with fair enough understanding on Attrition analysis.

Chrm Message From: savi989 Total Posts: 70 Join Date: 22/08/2006  
Rank: Manager Post Date: 20/02/2009 10:50:30 Points: 350 Location: India

There are different ways of calulating attrition. it could be calculated on monthly, quaterly, bi-annually, or annually.

for monthly calculation it is imp to calculate average headcount and attrition is always calculated on the base value. for monthly basis:

opening bal+closing balance/2=avg head count

closing bal=opening+new joinees-exits

attrition= involuntary exits/avg headcouny*100*12

i hope this solves ur query

Chrm Message From: Taranminhas Total Posts: 1 Join Date: 22/08/2006  
Rank: Beginner Post Date: 13/04/2009 02:05:59 Points: 5 Location: India

HI!

Formula for Attrition is supported here by giving a suitable example.:

No of Head Counts in a Month start : 100

No of additions in a month : 50

Attrition : 20

Closing Head Counts at the end of the month : 100+50-20=130

Formula  for calculation of Attrition is : 20*100/130 =15.38%

I hope it will clear your doubts.

Regards

Taranpreet Minhas


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