Employee attrition rate is the percentage of employees who has left an organization over a certain period. It includes those employees who left voluntarily and involuntarily. Another employee attrition rate definition is that it is staff’s turnover. It is an indication of the capability of an employer to retain employees. Therefore, organizations need to calculate the attrition rate. Below it is one of the formulas used to calculate the rate.
Calculating the employee attrition rate
Deducing the employee attrition rate is easy. Let’s calculate the rate together by following the steps below.
1. Calculate the average number of employees who worked in the organization throughout the year. Add the number of the employees who were present at the beginning of the year and those who were still working in the company at the end of the year. Divide the sum by two. For instance, if a company had 960 employees at the starting of the year and 940 at the end of the year, the average number of employees per year would be 960+940/2= 950
2. Next, assess the number of employees who left the company in the year. Do so, by evaluating the previous year’s records. If your organization does not keep records on employees’ attrition, you can calculate the number of staff that left over the year. Assume 100 employees left the company.
3. Then, divide the number of staff who left the organization during the year by the average number of employees in that year, to deduce the employee attrition rate. Continuing the example above, the employee attrition rate, in this case, would be 100/950*100=10.5%
