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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: sanjaibabu.j Total Posts: 2 Join Date: 22/08/2006  
Rank: Beginner Post Date: 23/04/2009 07:05:08 Points: 10 Location: India

Dear Prashanth,

Pls find the formula that we use.
Annual attrition rate: Total number of resigned employee in past 12 months / (headcount at month 1-Jan + headcount at month 12-DEC)/2
Monthly attrition rate: total number of resignees in a month/(headcount in the begining of the mth + headcount at the end of the mth)/2

Opening Balance    = 415
New addition = 115
Attrition = 129
Attrition formula to % = 129/472.5*100
= 27.3%

Chrm Message From: bharatraiverma Total Posts: 1 Join Date: 22/08/2006  
Rank: Beginner Post Date: 06/01/2010 04:30:07 Points: 5 Location: India
Dera Prashant, PFB the attrition formula. opening count + closing count divided by 2 then divided by the number of attrition count Example: 1. December opening count was : 25 2. Resigned in December : 4 3. Employees Left : 21 4. New Joinees in December : 4 5. Now December closing count : 25 Now the calculation would be: 1. 25+25 = 50 2. 50/2 = 25 3. 4/25 = 16% So attrition rate for December was 16% Thanks & Regards Bharat Rai Verma
Chrm Message From: prabahan Total Posts: 1 Join Date: 22/08/2006  
Rank: Beginner Post Date: 06/01/2012 04:00:58 Points: 5 Location: India

If an employee's LWD is on the last day of the month, will it be counted in the attrition of the same month or in the next month.

Chrm Message From: hremprel Total Posts: 7 Join Date: 22/08/2006  
Rank: Beginner Post Date: 20/04/2014 07:13:53 Points: 35 Location: India

You should include hiring during the month as you are taking into consideration the attrition during the month.

If you want to be very accurate, you may consider the following formula:

A*100 / B

A = number of people left during current month

B = [(number of employees on last day of previous month) + (number of employees on the last day of current month)] / 2


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