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Does the number of terminated employees counts while calculating attrition?

17th February 2012 From Pakistan, Karachi

PARTICIPATING IN DISCUSSION:
Javeria
Student
+2 Others

Yes, it will be calculated. Even though it is been done by the company the employee is out of the organisation so it has to be shown in the exit.
A - Opening Headcount : Employees in the start of month.
B - New Joinees : New staff employed in the present month.
C - Actual HeadCount : (A+B) Opening Headcount+New Joinees
D - Attrition Headcount : No. of employees terminated+absconding+Resigned
E - Closing Headcount : (C-D) Actual Headcount-Attrition Headcount
Monthly Attrition % : (D/E*100) .
ie Monthly Attrition % = Attrition Head Count / Closing Head count * 100
18th February 2012 From India, Mumbai
Thanks Shenbagarajan,
But the purpose of calculating employee attrition is to review retention policies & taking appropriate measures that are crucial for employees retention, then what is the reason to include the number of fired/terminated employees?
Also,can u please mention the attrition formula for annual,quarter & month wise calculation. I am confused,there are different formulae on different sites.
18th February 2012 From Pakistan, Karachi
Dear Javeria, With reference to the above calculation, it implies to monthly, quarterly, and yearly with the same ratio.
20th February 2012 From Oman, Muscat
Hi Javeria,
Pople who have been terminated need to e shown under Desirable attrition which is a seperate measure. What u need to measurefrom an HR or the org angle is Voluntary attrition i.e people leaving for better opportunities, personal reasons, health issues, relocation, higher studies etc.
Cheers
Gagan
20th February 2012 From United Kingdom
Hi,
Thanks to both of you.
@ ambedkaraltaf, i found it in another thread of citehr to multiply attrition value by 12, 4 and 6 for Monthly,quarterly & bi-annual calculation :(
so dont know either to multiply it or not.
@ Gagan, does companies calculate desirable attrition? What is the use/advantage of it?
20th February 2012 From Pakistan, Karachi
Hi Javeria,

Companies do calculate Desirable & Voluntary attritions seperate for the mere reason of clearing a clear bifurcation and focussing on more policy driven measures towards the voluntary attrition. Under any circumstances, desirable attrition is a boon for companies towards letting go of the excessive baggage they have.

If I may butt in on the formula for attrition, while it is good to calculate monthly, quarterly etc everything....attrition should be clearly an annualized number because it tends to give a clear signal that with the current rat of attrition what would be the toal number of people lost by the end of the year. So the formulas are as under assuming that you are calculating attrition in June 2012

YTD Attrition = Total Exits till June 2012 / Average Headcount

Avergae Headcount is the average headcount from January till June

Annualized Attrition = YTD Attrition x 12/6

where 6 is the number of months passed in the year i.e. in the month of July it wud be 7, August 8 etc etc.

Gimme a shout if u think otherwise.....

Cheers

Gagan
20th February 2012 From United Kingdom
By the way, what will be the treatment of transferred employees?
For example, if an employee is transferred from dept A to B, are we going to include that amongst resignations of dept A, since i am calculating attrition of each department separately?
20th February 2012 From Pakistan, Karachi
Ideally transferred employees should not be taken in the numerator for attrition as that is purely a case of inter departmental movements. They will automatically impact the attrition % as the denominator (average headcount) will change basis the movements.
Do let me know if u think otherwise?
Cheers
Gagan
21st February 2012 From United Kingdom
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