Have couple of queries over calculation of attrition Rate.

1. If we say that attrition rate in a particular industry is 30-35%, does it mean annual attrition Rate?

2. In it is annual attrition rate, how can we arrive at monthly attrition rate for that industry.

I need this information to keep a track of my company vrs. industry attrition rate.

Regards,

Nalini

9th August 2007 From India

Bob Gately 40

**Hello Nalini:**

>1. If we say that attrition rate in a particular industry is 30-35%, does it mean annual attrition Rate?<

**Yes.**

>2. In it is annual attrition rate, how can we arrive at monthly attrition rate for that industry.<

**We can only guess at the monthly averages unless the source of the industry average has that data.**

>I need this information to keep a track of my company vrs. industry attrition rate.<

**Copy the following line into your browser's address window**

#109924

and download my "to_rate.xls" Excel file which should help you keep track of turnover rates by the month.

Comparing an employer's turnover rate to the industry's average turnover rate is interesting but we really should compare an employer's turnover rate to the best employers in the industry.

Let us not strive for mediocrity when we can be the best.

Bob Gately, PE, MBA

#109924

and download my "to_rate.xls" Excel file which should help you keep track of turnover rates by the month.

Comparing an employer's turnover rate to the industry's average turnover rate is interesting but we really should compare an employer's turnover rate to the best employers in the industry.

Let us not strive for mediocrity when we can be the best.

Bob Gately, PE, MBA

9th August 2007 From United States, Chelsea

Hi,

Formula to calculate attrition rate.

ATTRITION RATE

(no. Of attritions x 100) / (Actual Employees + New Joined)) /100.

Examples:

1) Actual Employees No. Of people left No. Of Joined Total Employees

(Opening BAL) (Attritions) (Current Headcount)

150 20 25 155

So according to the formula: ((20 x 100) / (150 + 25)) / 100

Which comes to 0.1142 i.e. 11%

Now as you had 150 previously and now 25 joined so it makes 150 + 25 =175

Now if you calculate 11.42% of 175 i.e. 175 x 0.1142 = 20

Which clearly shows that 175 – 20 = 155, which is your current headcount and at the same time you can say my attrition is 11.42% that shows you lost 20 employees of 150 and 25 more joined which makes count to 175.

Thx

Rinky!!!

10th August 2007 From India, Lucknow

You are right. We should compare ourselves with the best employer in the industry every time whether be it attrition rate or your performance.

My company belongs to advertising industry which is considered to be the most disorganized sector, hence getting data like this becomes a bit difficult. Our industry is worst hit by attrition hence I initiated it in my company. I believe as a HR person I should have a track of this, keep trying some or the other solution for this problem and simultaneously checking its effect on the attrition rate.

I'll definitely try getting the required data first and thenout my company's attrition rate

Thanks once again.

Regards,

Nalini

11th August 2007 From India

Bob Gately 40

**Hello Nalini:**

>Thanks Bob.<

**You are welcome and it is my pleasure.**

>You are right. We should compare ourselves with the best employer in the industry every time whether be it attrition rate or your performance.<

**Only if we want to improve, some companies are satisfied to be average.**

>My company belongs to advertising industry which is considered to be the most disorganized sector, hence getting data like this becomes a bit difficult.<

**Yes, I believe that. I advise my clients to ignore their industry's average attrition rate since it is irrelevant to them. Reducing turnover is what we do and we only use industry averages to demonstrate how bad most employers are at keeping employees.**

>Our industry is worst hit by attrition hence I initiated it in my company.<

**Attrtition is an employer's problem not an industry problem. However, if all members of the industry do the same ineffective things to lower attrition we should not be surprised that the average is high.**

>I believe as a HR person I should have a track of this, keep trying some or the other solution for this problem and simultaneously checking its effect on the attrition rate.<

**I agree which is the reason I developed my free workbook for tracking attrition monthly.**

>I'll definitely try getting the required data first and thenout my company's attrition rate.<

**Feel free to email me.**

Bob Gately

Bob Gately

11th August 2007 From United States, Chelsea

jkct15 165

dear Nalini,

Its very simple... if the particular industry have 30 to 40% of Attrition might be for an year or for a month. Just take the list of deletion/dropout and divide it with the actuals.u will find the exact attrition rate for the day,month and year.

regards,

Christopher.

11th August 2007

Its very simple... if the particular industry have 30 to 40% of Attrition might be for an year or for a month. Just take the list of deletion/dropout and divide it with the actuals.u will find the exact attrition rate for the day,month and year.

regards,

Christopher.

11th August 2007

As I also have a calculation but I really dot think that this calculation is showing me accurate results.

The calculation I have is as under -

1st Month Attrition YTD - (Cumulative Attrition/Cumulative average Headcount)*12/number of month.

Cumulative Attrition - 1st Month - Total resources left in the 1st Month

Cumulative Attrition - 2nd Month - Sum of Total resources left in 1st and 2nd month and this calculation will continue till the end of the year.

Cumulative everage Headcount - Average of the number at the Month End.

Thanks

Satinder Krishan

19th October 2007

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