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attrition formula for service Industry
Human Resources » Attrition and Retention


Chrm Message From: Srirangan.V Total Posts: 3 Join Date: 28/11/2008
Rank: Beginner Post Date: 20/07/2010 01:51:43 Points: 15 Location: India

Dear All,

 

I am working for a service Industry, we face attrition in Field Officer level.

 

HOw to retain employees.  

Chrm Message From: debora Total Posts: 79 Join Date: 28/11/2008  
Rank: Manager Post Date: 04/10/2019 11:35:52 Points: 350 Location: India

 

A common attrition rate definition refers to employee or staff turnover, but in a broader sense, attrition rate is a calculation of the number of individuals or items that vacate or move out of a larger, collective group over a specified time frame.

Attrition rate is also commonly referred to as churn rate. A term often used by human resources professionals to determine a company’s ability to retain employees, attrition rate is increasingly used in the marketing world as a figure that points to the company’s ability to retain customers or to project the number of new sales necessary to maintain the status quo, accounting for customer churn or customer attrition.

Calculating Attrition Rate: The Attrition Rate Formula

It’s actually quite simple to calculate attrition rate. It’s generally expressed as a percentage of customers and typically on a monthly or annual basis.

To calculate your customer attrition rate, use this simple attrition rate formula:

Number of customers lost by the end of the period divided by the total number of customers at the beginning of the period. 

So as an example, to calculate attrition rate for a company that had 650 customers at the beginning of the month and 600 customers at the end of the month, the attrition rate formula would be:

Number of customers lost: 650 – 600 = 50 customers

Number of customers at the beginning of the period: 650

Attrition rate formula: 50/650 = .0769 or 7.7% 

Attrition rate is a complimentary figure to retention rate, which refers to the number of customers retained during a given period, and to customer acquisition rate, which refers to the number of new customers acquired during a given period. The three figures together should equal 100 percent.

 

 
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