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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.


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