Are My Retention and Attrition Rate Calculations for New Recruits Accurate?

Hello friends,

I am a management trainee working on a project regarding the retention of fresh recruits. I have utilized the following formula for calculating retention and attrition rates:

Trainees Attrition Rate:
(No. of exits during the year) * 100 / (No. employed at the beginning of the year + No. recruited during that year)

Trainees Retention Rate:
(No. retained at the end of the year) * 100 / (No. employed at the beginning of the year + No. recruited during that year)

I have performed a sample calculation, which is detailed in the attached Excel sheet.

I would like to inquire:
1. Is the formula used here correct?
2. Is the sample calculation accurate?

Hello friends,

NEED HELP! I am conducting a retention study of newly recruited trainees from the past 5 years. I have identified the following reasons for the departure of these trainees:

1. Better prospects
2. Higher studies
3. Encouraged to leave (poor performance)
4. Marriage
5. Health problems
6. Family reasons
7. Personal

Which reasons for leaving should I consider for attrition calculation, or should I take into account all of these?

Hey,

I think you should take all of them into account while calculating attrition. When calculating attrition, we only consider the number of people leaving or joining the organization, and not the reasons for the same. However, we can later discount the high attrition rates due to factors such as market conditions, personal reasons, government policy, etc.

Dheeraj

Hi Dheeraj,

Thank you for your reply. I think you are right. Reasons for leaving should be disregarded at the stage of calculating attrition. Later on, it can be attributed.

Regards,
Search.

Hello friends,

Please help! Can someone tell me the formula for calculating attrition? Is it:

Attrition Rate = (Number of Joinings in a Year - Number of Separations in a Year) / Total Number of Employees in a Year?

Please let me know if this is correct or if the above formula is right. Thank you.