kamalarya Started The Discussion:
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?
Your help is much appreciated.
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 :-)
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).
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
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.
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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