Understanding Attrition Rate Calculation Methods in the IT Industry

I am working on a year-long project regarding the attrition rate in the IT industry (from an employee's point of view). Please, can anybody help me with any kind of data? My email id is [IMG]https://www.citehr.com/misc.php?do=email_dev&email=dm9yYS5zd2V0YU BnbWFpbC5jb20=[/IMG]

Thanks

Dear Sweta,

I work for an IT company myself and am sort of looking for the same details. I can certainly help you with the method of calculating the attrition rate, as my colleague, Aditi Mohile, is quite experienced in this. The formula is as follows:

Attrition Rate = Total Number of Resigns per month (Whether voluntary or forced) / Total No. of employees at the beginning of the month + total No. of new joinees - total No. of resignations * 100

For example, if:
Number of resignations = 2
Number of Employees at the beginning of the month = 50
New Joinees = 5

Then,
AR = 2 / 50 + 5 - 2 * 100
= 2 / 53 * 100
= 3.77%

I hope this helps.

Thanks & Regards,
Reagan Lemos

That's very informative; thanks for it, Reagan. The high attrition rate in the IT industry has always been its greatest concern and a subject of much analysis and debate. Organizations use different methodologies for calculating their turnover rate. The approach to this calculation might vary from organization to organization.

I came across this on the web: the attrition rate remains a debatable area as there is no standard formula to calculate it. Here are a few of them:

- The employee base changes each month. So if a company has 1,000 employees in April 2004 and 2,000 in March 2005, then they may take their base as 2,000 or as 1,500 (average for the year). If the number of employees who left is 300, then the attrition figure could be 15 percent or 20 percent, depending on what base you take.
- Many firms may not include attrition of freshers 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.
- Essentially, the attrition number is also a PR or stock/analyst statement and is prone to dressing up.