Attrition Rate Calculation [Thread 23236]

Hi guys,

Can anyone tell me about the formulas to calculate:

1. Monthly annualized employee attrition rate
2. Quarter-to-date annualized attrition rate
3. YTD annualized attrition rate.

What I could deduce logically was:

1. For monthly = [number of exits in the month / (average headcount for the month)] * 12 * 100
2. QTD annualized = [number of exits till date in the quarter / (average headcount till date in the quarter)] * 4 * 100
3. YTD annualized = [number of exits till date in the year / (average headcount till date in the year)] * 100

Just want to confirm the above... Please, if anyone could help me out with the above, it would be really great.

Thanks in advance,

Natasha

Please note how to calculate the attrition rate on an annual basis:

Total number of employees left / On roll position X 1000

Hope the above will address your queries.

Thanks, Chitragya

Hi,

I have seen lots of posts on attrition calculation, but there is still chaos regarding the right method, especially when calculating on a monthly and quarterly basis. Please clarify whether the method provided by Nivritti is correct, or if it is the same generalized method as mentioned below for calculating monthly/quarterly/annually attrition:

((Number of attritions x 100) / (Actual Employees + New Joinees)) / 100.

Also, in this method, I don't understand the logic behind multiplying 100 with the number of attritions. I am eagerly waiting for a reply with the logic from experts.

Thanks,
Deepa

Waiting for the reply. Please, someone, clarify this for me.

I need this urgently, please help.

Deepa

Hi Deepa,

As per my study and the material with me, the formula for calculating the attrition rate is as follows:
Attrition rate = Number of resignations / Available manpower * 100

For example, if on the 1st of any month the manpower is 200, and during that particular month, 10 employees joined while 5 resigned, the available manpower at the end of the month would be:
Available Manpower = 200 + 10 - 5 = 205
Attrition Rate = 5 / 205 * 100

I hope this explanation helps you understand the concept better.

Pandurang

Hi Nivriti,

I do agree with Pandurang, but one small correction regarding the placement of 100:

Attrition rate:

Attrition rate = No. of resignations / Available manpower * 100 as given by Pandurang.
Attrition rate = (No. of resignations / Available manpower) * 100

You can check what difference it makes.

Truly Yours,
Kumar.H.P

Dear All,

We are calculating the Attrition Rate by using the following formula:

Attrition Rate = (Attrition Numbers / (Total Number of employees - Attrition Numbers)) * 100

Regards,
GK