Anjali sarin
Hello Seniors,
I am starting this thread out of confusion, as went through allot of posts on attrition rate calculation.
I am following the below formula to calculate attrition rate - annually:
attrition rate = no. of employee left during the year/ (total no. of employees in the beginning of the year + total no. of employees recruited during the year)*100
Would request all seniors to share their views.
Regards
AS

From India, Ambala
trurecruit
26

Dear Anjali,
If you had the optimum number of employees at the beginning of the year and if no employees left during the year, in all probability you would not have recruited any more during the year. So recruitment during the year should not form part of attrition calculation. Recruitment is simply a result or consequence of either initial deficiency or attrition. By itself attrition is simply the number who leave.
In my opinion attrition is the number of employees who leave during the year as against the number held at the beginning of the year, expressed as a percentage.
It should be: Number of employees who leave during the year (say 10) / Number of employees at the beginning of the year (say 80) * 100
= 10 / 80 *100
= 12.5
Hence the attrition during the year has been 12.5%
QED
Good luck.
Colonel Gahlot
'TRURECRUIT'

From India, Delhi
kkabdu
There are various ways to look at the attrition. A generic approach is count of staff who left during the year / (count of staff at the beginning + Count of staff at the end)/2. May exclude who are separated due to retirement/death etc if we are looking the rate for assessing the attrition in the light of employee engagement. Generally this number will not significantly impact the percentage, though. For better understanding you may go further to note the % of staff left among those with less than 1 year service, < 2 year service etc for better analysis.
From United Arab Emirates, Dubai
Ganesh Chavan
48

Dear Anjali, Please find attached herewith formula to calculate attrition rate. Hope this will help you &clear your doubt.
From India, Nasik
Attached Files (Download Requires Membership)
File Type: xls ATTRITION.xls (18.5 KB, 128 views)

Ganesh Chavan
48

Pl ignore earlier file, Please find attached herewith new file.
From India, Nasik
Attached Files (Download Requires Membership)
File Type: xls Attrition.xls (23.0 KB, 88 views)

Sanjeev.Himachali
94

Your formula is correct ....however you need to modify it a bit.
Attrition rate = no. of employees separated during the given period DIVIDED BY Average number of employees during the given period MULTIPLIED BY 100.
Average number of employees = Number of employees at the beginning of the period PLUS Number of employees at the end of the period DIVIDED by Two.
Kindly note that the attrition calculation need not be a yearly calculation. It can also be monthly, quarterly and half-yearly.

From India, Mumbai
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