Can anybody please define the terms Attrition and Employee Turnover ? Do help me out with a practical definition and not a book definition ! Thank you in advance. Pranesh John
From India, Coimbatore
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From India, Coimbatore
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Dear Praneshjohn,
Attrition in HR means the unpredictable and uncontrollable but normal reduction of the workforce due to resignations, retirement, sickness, or death.
The practical formula to calculate attrition is:
{(The formula and correct logic behind the calculation of ATTRITION RATE)}
((Number of attritions x 100) / (Actual Employees + New Joins)) / 100.
Examples:
1) Actual Employees Number of people left Number of Joined Total Employees
(Opening BAL) (Attritions) (Current Headcount)
150 20 25 155
So according to the formula: ((20 x 100) / (150 + 25)) / 100
This comes to 0.1142, i.e., 11%
Now, as you had 150 previously and now 25 joined, it makes 150 + 25 = 175
If you calculate 11.42% of 175, i.e., 175 x 0.1142 = 20
This clearly shows that 175 - 20 = 155, which is your current headcount, and at the same time, you can say your attrition is 11.42%, showing you lost 20 employees out of 150, with 25 more joining to make the count 175.
2) Actual Employees Number of people left Number of Joined Total Employees
(Opening BAL) (Attritions) (Current Headcount)
100 50 0 50
This is a special case where we are considering attritions only, keeping in mind that nobody has joined in a particular month.
So according to the formula: ((50 x 100) / (100)) / 100
This comes to 0.5, i.e., 50%
Now, as you had 100 previously and now 0 joined, it makes 100 + 0 = 100
If you calculate 50% of 100, i.e., 100 x 0.5 = 50
This clearly shows that 100 - 50 = 50, which is your current headcount, and at the same time, you can say your attrition is 50%, showing you lost 50 employees out of 100, with 0 joining to make the count 50.
3) Actual Employees Number of people left Number of Joined Total Employees
(Opening BAL) (Attritions) (Current Headcount)
500 200 100 400
So according to the formula: ((200 x 100) / (500 + 100)) / 100
This comes to 0.3333, i.e., 33.33%
Now, as you had 500 previously and now 100 joined, it makes 500 + 100 = 600
If you calculate 33.33% of 600, i.e., 600 x 0.3333 = 200
This clearly shows that 600 - 200 = 400, which is your current headcount, and at the same time, you can say your attrition is 33.33%, showing you lost 200 employees out of 500, with 100 more joining to make the count 400.
4) Actual Employees Number of people left Number of Joined Total Employees
(Opening BAL) (Attritions) (Current Headcount)
8000 5000 500 3500
So according to the formula: ((5000 x 100) / (8000 + 500)) / 100
This comes to 0.5882, i.e., 58.82%
Now, as you had 8000 previously and now 500 joined, it makes 8000 + 500 = 8500
If you calculate 58.82% of 8500, i.e., 8500 x 0.5882 = 5000
This clearly shows that 8500 - 5000 = 3500, which is your current headcount, and at the same time, you can say your attrition is 58.82%, showing you lost 5000 employees out of 8000, with 500 more joining to make the count 3500.
Let me know if you need any further assistance.
Best regards
From India, Bangalore
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482Attrition in HR means the unpredictable and uncontrollable but normal reduction of the workforce due to resignations, retirement, sickness, or death.
The practical formula to calculate attrition is:
{(The formula and correct logic behind the calculation of ATTRITION RATE)}
((Number of attritions x 100) / (Actual Employees + New Joins)) / 100.
Examples:
1) Actual Employees Number of people left Number of Joined Total Employees
(Opening BAL) (Attritions) (Current Headcount)
150 20 25 155
So according to the formula: ((20 x 100) / (150 + 25)) / 100
This comes to 0.1142, i.e., 11%
Now, as you had 150 previously and now 25 joined, it makes 150 + 25 = 175
If you calculate 11.42% of 175, i.e., 175 x 0.1142 = 20
This clearly shows that 175 - 20 = 155, which is your current headcount, and at the same time, you can say your attrition is 11.42%, showing you lost 20 employees out of 150, with 25 more joining to make the count 175.
2) Actual Employees Number of people left Number of Joined Total Employees
(Opening BAL) (Attritions) (Current Headcount)
100 50 0 50
This is a special case where we are considering attritions only, keeping in mind that nobody has joined in a particular month.
So according to the formula: ((50 x 100) / (100)) / 100
This comes to 0.5, i.e., 50%
Now, as you had 100 previously and now 0 joined, it makes 100 + 0 = 100
If you calculate 50% of 100, i.e., 100 x 0.5 = 50
This clearly shows that 100 - 50 = 50, which is your current headcount, and at the same time, you can say your attrition is 50%, showing you lost 50 employees out of 100, with 0 joining to make the count 50.
3) Actual Employees Number of people left Number of Joined Total Employees
(Opening BAL) (Attritions) (Current Headcount)
500 200 100 400
So according to the formula: ((200 x 100) / (500 + 100)) / 100
This comes to 0.3333, i.e., 33.33%
Now, as you had 500 previously and now 100 joined, it makes 500 + 100 = 600
If you calculate 33.33% of 600, i.e., 600 x 0.3333 = 200
This clearly shows that 600 - 200 = 400, which is your current headcount, and at the same time, you can say your attrition is 33.33%, showing you lost 200 employees out of 500, with 100 more joining to make the count 400.
4) Actual Employees Number of people left Number of Joined Total Employees
(Opening BAL) (Attritions) (Current Headcount)
8000 5000 500 3500
So according to the formula: ((5000 x 100) / (8000 + 500)) / 100
This comes to 0.5882, i.e., 58.82%
Now, as you had 8000 previously and now 500 joined, it makes 8000 + 500 = 8500
If you calculate 58.82% of 8500, i.e., 8500 x 0.5882 = 5000
This clearly shows that 8500 - 5000 = 3500, which is your current headcount, and at the same time, you can say your attrition is 58.82%, showing you lost 5000 employees out of 8000, with 500 more joining to make the count 3500.
Let me know if you need any further assistance.
Best regards
From India, Bangalore
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SAMPLE Employee Attrition Calculation sheet for FY 09-10 .xls
Calculation of Employee Turnover.doc
ATTRITION CALCULATION.pdf