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| Message From: prashantthakkar |
Total Posts: 17 |
Rank: Beginner |
| Post Date: 15/09/2006 12:54:16 |
Points: 85 |
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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 |
| Message From: hr.hitesh |
Total Posts: 18 |
Rank: Beginner |
| Post Date: 15/09/2006 12:56:59 |
Points: 90 |
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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. |
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