CALCULATION OF ATTRITION RATE
The Logical approach for calculating Attrition.
Remarks: Typically this method is more oriented towards HR aspect. Recruiter do not necessarily use this method, though a good indicative, and also this does not provide the attrition numbers specifically from Recruitment view point.
Opening Balance: OB
Resignations: R
New Joinings: NJ
ATTRITION % = [(R) / (OB + NJ)] * 100
Now for example:
Opening Balance: 197
Resignations: 22
New Joinings: 36
ATTRITION % = [(22) / (197 + 36)] * 100 = [22 / 233 ] * 100 = 9.44%
To check the formula, in the above example Opening Balance is 197 & New Joinees are 36. Hence Total onboard strength is 197 + 36 = 233. Now if I say attrition is @ 9.44%, then 9.44% of 233 (that is onboard strength) should give us the Resignee count, which is 233 * 9.44% = 22. In our example also we took 22 Resignations. Hence proved that the formula is accurate.
Remarks: Internationally also this is a fairly acceptable formula, yet in my view this fails to account for negative attrition.
Rameswar Prasad
HR