Chanda Batra Started The Discussion:

Hi,

Request you to tell me the formula to calculate Annual Attrition Percentage? To calculate per month attrition, we use (Total attrites/Avg Headcount)*100 and avg headcount= (opening+closing)/2. How do I calculate annual attrition percentage? Please give the details.

Regards,
CB

govindsinghnegi - Contributing Member
Hi,

Calculation method mentioned by you is not correct. Pls refer to my recent blog...link below:--

http://www.citehr.com/blogs/govindsi...-analysis.html

Formula to calculate monthly attrition analysis is :--

Closing Head Count= Opening Balance + New Joinees - Seperations
Opening Balance = Last month closing balance

Annual Attrtion:-- Avg of all months's monthly Attrition %

Also attaching attrition analysis format which we use in our company. Hope it will help you.

 Attrition Analysis.xls (645.0 KB, 2807 views)
Hi Govind.

I was looking at your attrition sheet but couldn't understand it well.
Can you tell me what the following means

Good people
Managed attritions
non managed attritions.

Thanks,
Shalini.

suparnaavasthi - Contributing Member
Hi Govind, My query is similar to that of shalini. Please let me know the same. Regards, Suparna

kshantaram - Contributing Member
Attrition rate is percentage rate of people leaving the organisation, people left - and is relative to the total number of people who have worked for the organisation during the period under consideration, hence :

Attrition Rate =

number of people left/number of people worked for the organisation =

number left/opening balance+new joinees x 100

the number left could be from old employees or those who join and immediately leave in a short period

i understand those who have been asked to leave also reflects the effectiveness of the organisation in attracting and retaining the right kind of people and hence need to be included to have an overall measure of attrition in the organisation including those who retire and are not given extensions.

say, the opening balance was 100 people, joined 50 people
therefore total people worked during the period = 150

left at different points of time 30 people

therefore Attrition Rate =

30/100 + 50 = 30/150x100 = 20%

if you calculate Attrition on the closing strength ie 150-30 = 120

the rate would be 30/120 = 25% which is wrongly exaggerated

which would show the wrong flow rate, 120 is the figure after attrition

we would rather want to know the rate of attrition, how many people joining the organisation leave for a given period.

hope the above makes sense,

regards,

kshantaram

mrinalinichat - Contributing Member
Govindi, The detailed excel sheet is excellent know-how, one which I would like to continue but my understanding is not very clear. My queries are same as Shalini, can you please clarify.

What is non-Managed people and Managed People??

I have to submit the Attrition calculation by end of Next week. My company is small company but growing rapidly., so we have deceded to track the attrition rate.

pleasse suggest the best way to calculate it.

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