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Attrition rate calculation
Human Resources » Attrition and Retention

Chrm Message From: rananavare.sneha Total Posts: 2 Join Date: 24/05/2010
Rank: Beginner Post Date: 24/05/2010 06:48:47 Points: 10 Location: India



Im Sneha.

Im doing my summer internship project on Attrition Rate.

i have calculated attrition rate monthly as follows,

if number of employees left organisation=10

actual strength=100 (new joinings+existing employees)

Attrition Rate=10/100*100 = 10 %

But if we multiply it by 12 (for 12 months), then it comes to 120%.

(and i think its not correct).


please tell me the proper formula for calculating attrition rate.


Chrm Message From: shaili Total Posts: 28 Join Date: 24/05/2010  
Rank: Executive Post Date: 06/07/2010 12:49:32 Points: 140 Location: India

True that we calculate Attrition Rate and Employee Turn Over and get figures - but what's the value addition of those figures??

Ex; In a company with 200 employees at the start of the period, where 02 highly skilled employees with 10 years of experience leave the company and the company recruit 20 fresh graduates during that period: Attrition rate will be 0.009 & the Manpower Turnover will be 0.009.

If it happened the other way; 20 recently recruited fresh graduates leave and 02 highly skilled candidates with 10 years of experience join: Attrition rate will be 0.099 & the Manpower Turnover will be 0.1

I believe we need a more detailed analysis, because these figures might Rate & Ratios alone can give wrong picture.

Chrm Message From: Total Posts: 20 Join Date: 24/05/2010  
Rank: Executive Post Date: 06/07/2010 12:50:34 Points: 100 Location: India

Dear all,

When we analyse the attrition rate - we need to see the following-

1. Attrition rate at each levels or bands.
2. Attrition rate to be further analysed in terms of statistics for heads like leaving for better prospects,retirement,forced attrition,medical grounds or number of years served etc. This would provide the meaningful data & insight on the attrition.
3. Assess the years or work done by the ex-employees have worked in the organization at every levels.



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