Attrition Rate Calculation - Doubt!! - XLS Download

Attrition rate

• Attrition: Number of employees who left in the year / average employees in the year x 100. Thus, if the company had 1,000 employees in April 2004, 2,000 in March 2005, and 300 quit in the year, then the average employee strength is 1,500 and attrition is 100 x (300/1500) = 20 percent.
  A graded system can probably depict the true picture.
• Fresher attrition: the number of freshers who left within one year. It tells you how many are using the company as a springboard.
• Infant mortality: percentage of people who left within one year. This indicates the ease with which people adapt to the company.
• Critical resource attrition: key men exit.
• Low performance attrition: those who left due to poor performance.

Source: TVA Infotech

Attrition % = (Total no. of resigned / Average no of Employees ) * 100
same way YTD can be calculated.
som
27th April 2009 From India, Bangalore

Dear Pankaj, I hope the following formula can give you a clear picture. Attrition Rate = *100 Regards, Hari Naudiyal
27th April 2009 From India, Jaipur

Dear Som,
Thanks for your suggestion but will you tell me please how to cross check that our attrition rate is correct.
Valuable suggestions and comments required from seniors.
Regards
Pankaj Chandan

27th April 2009 From India, New delhi

Attrition rate can be calculated by this simple formula: No of Leavers/Total headcount for that month * 100. Regards Rainy Bhattacharya HR & Admin
27th April 2009 From India, Delhi

Calculating employee turnover is not a matter of simple mathematical methods. It is necessary to take into account the root of the problem by going back to the hiring stage. Harish Bhattiprolu, Director, Sales, Kenexa Technologies, points out that most organisations do not evolve robust measurements for calculating the cost of labour turnover or a bad hire. The details of information required and the measurement metrics are not common formulae, but have to be designed in keeping with the nature of the business and different job functions. “As a result, most organisations do not intend to mislead by disclosing statistics which may not be true; it is just that perhaps they believe those to be true. It is imperative to evolve the science of measurement before the measure itself,” he asserts.
Using these formulae, organisations will learn what their real attrition figures are believes Noronha. “Like with most data, attrition too can be interpreted in different ways and it is up to each organisation to decide how and what they wish to share. Companies are generally more concerned about regretted voluntary attrition. These are people who leave on their own will and those whom the organisation would have loved to retain. Similarly, organisations measure managed attrition. These are people made redundant, laid-off or exited. Though managed attrition is non-regretted by the organisation, the trend of managed attrition, if on the higher side, may show the company in poor light, and does have an impact on its health.”
Attrition does not only reflect the hiring policies of an organisation, but also induction/retention strategies, training methodologies, work culture and many other factors. Munje reminds that it costs the company valuable time, money and often credibility (especially where employees develop relationships with customers). “Some companies just look at the employee turnover in terms of the cost (based on the PwC Saratoga Institute theory) involved in the hiring and training of individuals. Others look at the opportunity lost and its cost. Sometimes, companies also use the figure between 50 percent and 200 percent of the annualised salary.”
Organisations aim to reduce voluntary attrition of productive employees and encourage unproductive staff to leave its fold. “It makes way for career progression, new thinking and innovation. However, what that number should be again differs from industry to industry and from country to country as economies vary. The demand vs supply of talent/resources plays a critical role too. What is considered a healthy attrition number in an industry in India may not be so in a more stagnant economy where no new jobs are being created,” explains Noronha. Nevertheless, zero attrition is unimaginable and unhealthy for any organisation.

Som ( Info from Sources)
27th April 2009 From India, Bangalore

Attrition Rate=Left Employees/Total No.of Employees*100 Supp Left Employees=50 Total No.of Employees=200. Attrition=50/200*100 Then We get Attrition rate.
27th April 2009 From India, Hyderabad

Svnmba your calculation is not valid. First find the average no. of employees. then follow below calculation. Attrition % = (Total no. of resigned / Average no of Employees ) * 100 Som
27th April 2009 From India, Bangalore

Calculation of Attrition Rate:
Total no.of Resignation/Total no. of Employee + Total no.of new Employee - Total no. of Resignation x 100
Ex: Total no.of Resignation: 2
Total no. of Employee:20
Total no.of new Employee:2
Total no. of Resignation:2
2/20+2-2 x100 = 10%
27th April 2009 From India, Pune

Hi Pankaj Please find the attachment on Attrition.Hope it will be useful to you. Regards Suman.AVK
28th April 2009 From India, Hyderabad

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AttritionRate.doc (24.5 KB, 92 views)

Dear,
It is so simple to calculate attrition rate, the formulae is No. of employees left during a particular month / Actual balance at the end of that particular month x 100.
For example you have opening balance of 100 employees, 10 of them left during the month and 10 joined your percentage of attrition is 10% (10/100)x100
Regards,
Sreekanth
28th April 2009 From United States