Understanding Attrition: How Do You Calculate Employee Turnover Rates?

To calculate attrition, you can use the following formula:

Attrition Rate = (Number of employees who left during a period / Average number of employees during the same period) x 100

This formula helps in determining the rate at which employees are leaving the organization. By tracking attrition rates, companies can assess the effectiveness of their retention strategies and take necessary steps to improve employee retention.

Hope this will be helpful....

[(text{number of attritions} times 100) / (text{actual number of employees} + text{new joined employees})] / 100

One more clarification is whether the actual number of employees includes the employees up to the current date or the employees up to the last financial year. Can you please explain the formula?

Employee till date...

Example:
Actual Employees No. Of people left No. Of Joined Total Employees
(Opening BAL) (Attritions) (Current Headcount)
150 20 25 155

So according to the formula: ((20 x 100) / (150 + 25)) / 100
Which comes to 0.1142 i.e. 11%.

Now, as you had 150 previously and now 25 joined, it makes 150 + 25 = 175.
Now, if you calculate 11.42% of 175 i.e. 175 x 0.1142 = 20.
This clearly shows that 175 - 20 = 155, which is your current headcount. At the same time, you can say your attrition is 11.42%, which shows you lost 20 employees out of 150, and 25 more joined, making the count 175.

Monthly Basis:
(Number of Attrition in that month / Total number of employees in that month) * 100

Yearly Basis:
(Number of Attrition in that year / Total Number of employees in that year) * 100

Ensure there is a single line break between paragraphs.

Hi,

I want to know that attrition means the people who left in that particular year. Can you explain in a much better way?

Regards,
Amit

Attrition rate:
Total number of people who left the organization in a given period / (Headcount at the start of the period + people recruited during the period)

Regards,

ATTRITION RATE CALCULATION: (Apr '08 to Jun '08)

MONTH
Op. Balance
Left
Joined
Cl. Balance
Average
Att. Rate

(A+D) / 2
(B / E)*100

(A)
(B)
(C)
(D)
(E)
(F)

APRIL
117
4
1
114
115.50
3.46

MAY
115
5
5
115
115.00
4.35

JUNE
116
2
6
120
118.00
1.69

JULY
120
6
3
117
118.5
5.06

AUGUST
119
3
2
118
118.5
2.53

SEPTEMBER
118
2
2
118
118
1.69

1st Quarter
117.5
25
19
117
117.25
3.13

Hi,
This is the formula for attrition rate calculation.
MEASUREMENT OF ATTRITION RATE:-
Accession Rate = No. of employees joining during
the period
X 100
Average no .of employees during
the period
Seperation Rate = No. of employees leaving
X 100
Average no .of employees during
the period
Flux Method Attrition Rate = Additions + Seperation
X 100
Average no .of employees during
the period
Replacement method Attrition Rate =Accession – Seperation
X100
Average no .of employees during
the period
Stability Index = No. of workers with one year's service (or more) now
X100
No. of workers with one year's service (or more) one year ago

Hi,

Attrition Calculation: Number of Resignations divided by total number of Employees in the organization multiplied by 100. At any given point in time, this will give you the Attrition rate.

Seniors: Please correct me if I am wrong.

Regards,
Lakshmi N

Dear Lakhmi,

Please correct your formula. It should be:

(No. of employees resigned during the period / Average head count during the period) * 100

where Average head count = (Head count at the start of the period + Head count at the end of the period) / 2

Thanks & Regards,

S. Narendra Nath

Dear All,

I believe there should be three types of attrition calculation methods:

1) Monthly Attrition: To understand the status of a specific month
= (separations in the month) / (opening of the month + closing of the month) / 2

2) Year-to-Date Attrition: To know the YTD status
= similarly as above, but the period has to be specific. For example, if we consider the period from April 09 to December 09, then the opening balance should be for April 09 and the closing balance should be for December 09.

3) Annual Attrition: This will help us monitor the attrition trend and take timely measures. It serves as a forecasting tool.
= (total number of separations) / (average of opening balances) / number of months considered for calculation * 12

For instance, if we want to analyze the attrition trend in the year 2009 and it's April 09, the calculation will be as follows:
Jan 09: Opening - 120, Left - 5
Feb 09: Opening - 115, Left - 7
Mar 09: Opening - 121, Left - 6
Apr 09: Opening - 123, Left - 3

Then our annual attrition will be = (5 + 7 + 6 + 3) / (average of (120 + 115 + 121 + 123)) / 4 * 12
This calculation will indicate our year-end status if the trend of losing people continues in the last 4 months.

I hope this explanation is helpful to all of us.

Bye

Attrition calculation per year = No. of exits / Total headcount * 100

Attrition calculation per month = No. of exits / Total headcount * 100 * 12

Regards,
Charvka Reddy

Hi,

Attrition can be calculated as follows:
(Total attrition / Average of Opening & Closing Headcount) * Number of months data is taken from.

Regards,
Abhi

Attrition is calculated as the total number of resignations per month (whether voluntary or forced) divided by the total number of employees at the beginning of the month plus the total number of new joiners minus the total number of resignations, all multiplied by 100.

Dear Piyush,

Could you suggest a site that provides the proper material for PF calculation?

Vijay

Hi,

I am attaching one file herewith. I hope this will be helpful to you.

Thanks,
Minal

Dear Friends,

Please clarify whether attrition is to be calculated on a monthly basis or annually.

Regards,
Sujith

I need the minimum payment amount for PF & ESI. I also need a calculation sheet if you have one for calculating PF & ESI. Which components of salary or wages do we consider when calculating PF or ESI?

Thanks

Hi,

Attrition equals total employees left multiplied by 100 divided by the average of opening and closing strength.

Kashi

Gentlemen,

In my company, the attrition formula is based on the preceding 12-month joiners and leavers. For example, the opening manpower is always in April. Attrition for the month of November 2009 is calculated as follows:

OM in April 09: 50

The number of employees who left in the 12 months from December 08 to November 09, divided by the opening manpower plus the joiners from December 08 to November 09:

18 / (50 + 26) * 100 = 24% (Attrition in Nov 09)

Usuf Ali - Chennai