Kumar H P
Hr And Compliance
Rgs_mys
Teaching-professor [hr]
Engage@bol.net.in
Hr Consultant
Ashamanjunath
Hr Incharge

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Hi All,
How to calculate attrition rate?
What are the basic principles to remember before calculating attrition rate?
What are the steps to follow to decrease attrition in any company?
<link no longer exists - removed>

Hi.....
Attrition Rate: There is no standard formula to calculate the attrition rate of a company. This is because of certain factors as:
  • The employee base changes each month. So if a company has 1,000 employees in April 2007 and 2,000 in March 2008, then they may take their base as 2,000 or as 1,500 (average for the year). If the number of employees left is 300, then the attrition figure could be 15 percent or 20 percent depending on what base we take.
  • Many firms may not include attrition of fresher who leave because of higher studies or within three months of joining.
  • In some cases attrition of poor performers may also not be treated as attrition.

Attrition rate can be calculated using a simple formula:

Attrition = (No. of employees who left in the year / average employees in
the year) * 100

dear,
Attrition is the Bane of the industry and the best way to overcome this is to have a good strategy based on the fol.
Firstly followthe technique Recruitment for Retention , secondly do Realistic Job Previewing or RJP. Then ,judiously follow the below.
1.Good people Mgt.
2.Cordial work environment.
3.Total welfare.
4.Show concern for employees.
5.Recognition of contributions made.
6.Apt rewards whenever required.
7.Flexibility in work schedules.
8.Attractive benefit packages.
9.Generous retirement plans.
10.ESOP & Other Welfare measures to top it.
This should help in bringing the attrition rates down atleast to some extent.
Warm Regards,
RGS.

Hello Engage India:
>How to calculate attrition rate?<
See attached file "to_rate.xls"
>What are the basic principles to remember before calculating attrition rate?<
Count all people that leave.
>What are the steps to follow to decrease attrition in any company?<
Hire competent people.
Hire people who have excellent job talent.
Compensate fairly.
Reward for performance.
Don't tolerate ineffective managers.
Bob Gately


Attached Files
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File Type: xls to_rate.xls (40.0 KB, 374 views)

Dear Mr.Gately,

The steps that are mentioned to reduce attrition are excellent but.....
the problem lies in hiring competent people and those who have good job talent as u say.Assuming they are hired , do you think they are going to stay put in the organisation for long ? Reasearch /surveys reveal that the so called highly competent & those with exceptional job talent are the one's who quit early as compared to the average one's.Given this ,don't you think it is better to hire average talent and train them to be competent , compensate them better and make them feel wanted and important in the organisation.

Further ,one more point to note is that even if highly competent employees are loyal & commited to the organisation they work for,don't you think there are poachers all around to tempt and grab them come what may ? Besides, not tolerating ineffective managers does,nt arise because very rarely do highly competent personnel slide down to being ineffective.Do you get my point ?

Warm Regards,
RGS.

Hello RGS:

>The steps that are mentioned to reduce attrition are excellent<

Thanks.

>but.....the problem lies in hiring competent people and those who have good job talent as u say.<

Most all managers are good at hiring competent employees.

Most managers are not good at hiring competent employees who also have a talent for the job.

>Assuming they are hired , do you think they are going to stay put in the organisation for long?<

Yes, if they are not mismanaged.

>Reasearch /surveys reveal that the so called highly competent<

Employees can be highly competent yet have inadequate job talent.

> & those with exceptional job talent are the one's who quit early as compared to the average one's.<

Quite the opposite. I think we are not talking about the same talent. Talent is not acquired in schools or colleges and talent cannot be acquired after the hire.

>Given this, don't you think it is better to hire average talent and train them to be competent, compensate them better and make them feel wanted and important in the organisation.<

No, it is never better to hire average talent over the more talented.

>Further, one more point to note is that even if highly competent employees are loyal & commited to the organisation they work for,don't you think there are poachers all around to tempt and grab them come what may?<

As long as they have a good job match, i.e., good talent, and they are managed well and paid well they'll stay. Employers cannot cheat on any of an employee's success requirements; effective management, competitive salary, career planning, etc.

>Besides, not tolerating ineffective managers doesn't arise because very rarely do highly competent personnel slide down to being ineffective. Do you get my point?<

Oh my, are you suggesting that competent and effective are the same thing?

Bob Gately

Dear Mr.Gately,

Definitely not,I am not suggesting competence & effectiveness as one & the same but i surely would like to say that generally with competence comes effectiveness.

I do understand there's a common misconception that a person's skill is his talent. Skill's , however are not talents.Talent's ,on the other hand require skills I believe.

People can have skills and knowledge in areas where their talents do not lie .STEPHEN
COVEY says if people have jobs that requires their skills but not their talent ,their organisations can never tap into their passion or voice.So,fire & motivation must come from within to get out the best.

An employee may have the KSA,s but if actual application does 'nt take place to carry out the assigned task then it surely amounts to incompetence ,is'nt it?There is a mismatch here interms of job,person as well as competencies.Do you agree ? This is
where a good no. of managers falter in Recruitment & Selection and end up in selecting employees to perform tasks that does not suit their competencies resulting in dissatisfaction leading to high attrition rates.

Warm Regards,
RGS.

Hello RGS:

>... I am not suggesting competence & effectiveness as one & the same but i surely would like to say that generally with competence comes effectiveness.<

Competence with talent brings effectiveness.

Competence is required for job success but it is not sufficient.

>I do understand there's a common misconception that a person's skill is his talent.<

I agree..

>Skill's, however are not talents<

I agree.

>Talent's, on the other hand require skills I believe.<

I disagree since a person can have excellent job talent yet be incompetent.

>People can have skills and knowledge in areas where their talents do not lie.<

Yes, and all too often people are in jobs that do not require their talent--these are bad hires.

>STEPHEN COVEY says if people have jobs that requires their skills but not their talent ,their organisations can never tap into their passion or voice.<

I agree but then again that is my business.

>So, fire & motivation must come from within to get out the best.<

I agree and when a person has the fire and motivation for the job he may have the talent for the job.

>An employee may have the KSA,s but if actual application doesn't take place to carry out the assigned task then it surely amounts to incompetence ,is'nt it?<

We can be competent yet perform poorly due to our lack of talent.

>There is a mismatch here in terms of job, person as well as competencies. Do you agree?<

Yes.

>This is where a good no. of managers falter in Recruitment & Selection and end up in selecting employees to perform tasks that does not suit their competencies resulting in dissatisfaction leading to high attrition rates.<

Managers do a good job of screening out incompetent job applicants so they do hire competent employees. What they don't do is differentiate between competent applicants who have job talent and those that don't have job talent. They hire both types and then complain that many new hires are less than successful.

[
Dear Sir,

Excellent discussion.

Regards,

Asha Manjunath:confused:
quote=Bob Gately;401510]Hello RGS:

>... I am not suggesting competence & effectiveness as one & the same but i surely would like to say that generally with competence comes effectiveness.<

Competence with talent brings effectiveness.

Competence is required for job success but it is not sufficient.

>I do understand there's a common misconception that a person's skill is his talent.<

I agree..

>Skill's, however are not talents<

I agree.

>Talent's, on the other hand require skills I believe.<

I disagree since a person can have excellent job talent yet be incompetent.

>People can have skills and knowledge in areas where their talents do not lie.<

Yes, and all too often people are in jobs that do not require their talent--these are bad hires.

>STEPHEN COVEY says if people have jobs that requires their skills but not their talent ,their organisations can never tap into their passion or voice.<

I agree but then again that is my business.

>So, fire & motivation must come from within to get out the best.<

I agree and when a person has the fire and motivation for the job he may have the talent for the job.

>An employee may have the KSA,s but if actual application doesn't take place to carry out the assigned task then it surely amounts to incompetence ,is'nt it?<

We can be competent yet perform poorly due to our lack of talent.

>There is a mismatch here in terms of job, person as well as competencies. Do you agree?<

Yes.

>This is where a good no. of managers falter in Recruitment & Selection and end up in selecting employees to perform tasks that does not suit their competencies resulting in dissatisfaction leading to high attrition rates.<

Managers do a good job of screening out incompetent job applicants so they do hire competent employees. What they don't do is differentiate between competent applicants who have job talent and those that don't have job talent. They hire both types and then complain that many new hires are less than successful.[/quote]

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