How Do You Calculate Annual Attrition Percentage? Seeking Detailed Guidance

Hi,

I would like to request information on the formula for calculating Annual Attrition Percentage. To calculate monthly attrition, we typically use the formula (Total attrites/Average Headcount)*100, where the average headcount is calculated as (opening + closing)/2. Could you please provide guidance on how to calculate the annual attrition percentage? I would appreciate detailed instructions.

Regards,
CB

Hi Govind,

I was looking at your attrition sheet but couldn't understand it well. Can you tell me what the following means:

- Good people
- Managed attritions
- Non-managed attritions.

Thanks,
Shalini.

Hi Govind,

My query is similar to that of Shalini. Please let me know the same.

Regards,
Suparna

Attrition rate is the percentage rate of people leaving the organization. It is relative to the total number of people who have worked for the organization during the period under consideration. Hence:

Attrition Rate = number of people left / number of people worked for the organization = number left / (opening balance + new joinees) x 100.

The number left could be from old employees or those who join and immediately leave in a short period. I understand that those who have been asked to leave also reflect the effectiveness of the organization in attracting and retaining the right kind of people. Hence, they need to be included to have an overall measure of attrition in the organization, including those who retire and are not given extensions.

For example, if the opening balance was 100 people and 50 people joined, the total people worked during the period would be 150. If 30 people left at different points in time, then the Attrition Rate would be:

30 / (100 + 50) = 30 / 150 x 100 = 20%.

If you calculate attrition based on the closing strength (150 - 30 = 120), the rate would be 30 / 120 = 25%, which is wrongly exaggerated. This would show the wrong flow rate, as 120 is the figure after attrition. We would rather want to know the rate of attrition, how many people joining the organization leave for a given period.

Hope the above makes sense.

Regards,
Kshantaram

Govindi,

The detailed Excel sheet is excellent know-how, one which I would like to continue, but my understanding is not very clear. My queries are the same as Shalini's. Can you please clarify.

Understanding Managed and Non-Managed People

What are non-managed people and managed people? Please help with this. I have to submit the attrition calculation by the end of next week. My company is small but growing rapidly, so we have decided to track the attrition rate. Please suggest the best way to calculate it.

Regards,