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?

Your help is much appreciated.

Thanks

Kamal

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

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

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

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

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