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kamalarya Started The Discussion:
Hello Everyone

I have seen almost all the threads on Citehr however in the all threads there are different formulas for calculating the attrition rate. I am really very confused because of this.

Please tell me the correct formula for calculating the attrition rate with an example?

Thanks

Kamal
Attrition is defined as unpredictable and uncontrollable, but normal, reduction of work force due to resignations, retirement, sickness, or death.

it is calculated as follows

Attrition%=(No. of Employees Quit) /(Avg. Employees during that time frame) %100

Inputs for computing Annualized Value is
Monthly – Multiply the Value by 12
Quarterly – Multiply the Value by 4
Half Yearly – Multiply the value by 2
Annual – Do not multiply :-)

Regards,
Phani
Monthly Attrition =Monthly Voluntary Leaver/Actual Headcount of month*100

YTD =Total Voluntary Leaver/Average Headcount of no .of months *100

Annualised =Total Voluntary leavers/Actual Headcount of month * 12*100

Rolling Annualised =Total Voluntary Leaver/Average Headcount of no .of months *100*12/no of months
Attrition%=(No. of Employees Quit) divided by (Avg. Employees during that time frame) multiplied by 100.

For annualised Attrition % we have to multiply it by 52 or 12 or 4 or 2 (depending on the input value of time frame).
such as
If the time frame is of a week multipy by 52
If the time frame is of a month multipy by 12
If the time frame is of a quarter multipy by 4
If the time frame is of a half year multipy by 2
Greetings, Please find the standard calculation discussed in the link shared below : http://www.citeman.com/10549-taming-attrition-through-numbers-a-relook-at-its-calculation/ Regards, Nabomita
Hello kamalarya Please find the attached file i think you get an idea how to calculate Attrition rate
Attached FilesProvided by community member v2varun. Register to join your network of peers.
 attrition formula.doc (30.5 KB, 3284 views)
Hello Kamalarya, The simplest formula for calculating Attrition rate =Total No. of people left the organization in the period Hope this will serve ur need Regards Neha
Dear Kamal arya,

The attrition rate calculation can be arrived as follows.

Attrition rate for April

Employee strength April = 100
Employees left in April = 2
Attrition rate = 2/100 X 100 = 2%

Attrition rate for May

Employee strength May = 102
Average employee strength = 100 + 102 = 202/2 = 101

Employee left in May = 2
Cumulative exits = 2 + 2 = 4
Attrition rate = 4/101X 100= 3.96 and not 4 as the average strength now is not 100 and is 101 in May.

Likewise you can compute month on month.

Trust the matter is clear.

M.V.KANNAN
Wow.... so many responses.. i am impressed.. seriously...Thank you everyone for your valuable inputs :) You all Rock :) Thread Closed :)
As per rules of science 'rate' is defined at any particular point of time, so Attrirition rate is also calculated at any particular point of time ie Attrition rate = number of employees who left the organization divided by total number of employees working in the organization at that particular time at which attrition is being calculated.

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