if in the month of august, out of 50 employees 18 employees leave, what is the attrition rate of such call center? what is the industry practice to calculate it? monthly or yearly? Please depict the method.
From India, Delhi
Dear Teamhr 2010,
Formula to calculate attrition rate is as follows
ATTRITION RATE = (no. of attritions x 100) / (Actual Employees + New Joined) /100.
For Example:
Actual Employees = No. Of people left No. Of Joined Total Employees
(Opening BAL) ( No. of Attritions) (New Joined)
150 20 25
Attrition rate = ((20 x 100) / (150 + 25)) / 100
Which comes to 0.1142 i.e. 11.42%
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,
The current head count is 155 and your attrition rate is 11.42% that shows you lost 20 employees of 150 and 25 more joined which in total counts to 175.

From India, Visakhapatnam
Dear Suneeta,
Formula for calculating attrition rate.
ATTRITION RATE
[ (No.of attritions ) / ( Opening head count + New Joined) ] *100
Examples:
As per your example
No of Head Counts in a Month start : 100
No of additions in a month : 50
Attrition : 20
Closing Head Counts at the end of the month : 100+50-20=130
Formula for calculation of Attrition is : 20*100/130 =15.38%
As per the formula shown above:
Attriton rate = [ 20/(100+50) ]*100
= 13.33 %

I think the formula i have shown is correct. pls check yours.
Regards,
Senthil

From India, Madras
Senthil, You are correct.
Dear All,
Request you to please quote valid informations as this is accessed almost by the people who wants to find out their answers for the doubts. If we misguide them, they will be at trouble at some point of time.
Regards,
RK

From India, Mumbai
Attrition rate calaculations must have a base - that is, it is first decided that what is the actual head count required for an organisation to sustain and operate its complete bussiness activity.Second it is also presumed that there will always be incoming and outgoing flow which may depend on the qualitative aspect of the organisation and employees response and acceptance to work environment.Question rises here that are we considering the employees who are serving under notice period and probations/observations.
In view of the above, attrition rate would therefore include the no: of employees actually left out and actual no of employees those who are existing and rendering the output plus the new joinees who deliver the output from the day one.
Requesting all members to kindly throw some light on the above.
Thanks
Bijay

From India, Vadodara
ATTRITION is generally considerd on the following basis:

OPENING + ADDITION – DELETIONS = CLOSING

ATTRITION % = (DELETIONS / (OPENING + ADDITION)*100

However, if you want to be little more detailed, you could consider the following elements:

Attrition or Employee Turnover is the exit of individuals from the Organisation. Broadly 4 types of exit can be considered:

FUNCTIONAL TURNOVER – This is the exit in which poor performers leave (Can also be called Forced Attrition)

DYSFUNCTIONAL TURNOVER – This is the turnover in which good performers leave (This is the regular form of attrition)

AVOIDABLE TURNOVER – This is a situation where the exit could have been avoided (Situations arising due to say a poor handling of a situation by a boss that makes a person leave even though he / she may not have planned).

UNAVOIDABLE TURNOVER - This is a situation where the turnover cannot be avoided (for example - death while at work, illness at work, transfer of spouse to a new location etc)

Thus from above, it can be seen, there are three areas where we do not have a control but one where we decide. Thus, in my opinion, to arrive at the real attrition, we should remove the exits arising out of the Functional, Avoidable and Unavoidable turnover and consider only the Dysfuctional Turnover.

This would give a more realistic attrition calculation.

S Venkateshwaran


Hi, Please see the below calculation and its right. Calculation opening 50 closing 32 People attrited 18 Average Head count for Aug 41 Attrition % (People attrited / Avg HC) 44%
From India, Mumbai
Dear TeamHR2010 36% is the attrition rate for the month of August. It should be calculated Monthly wise so as to minimize the attrition rate. Thanks and Regards Narendar Paleti
From India, Hyderabad
hi, How did you get Average Head Count? is this calculation as per Industry practice? regards, Team HR
From India, Delhi

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