Dear All,
Following is the formula of attrition with an example and proven logic.
[ ((text{no. Of attritions} times 100) / (text{Actual Employees} + text{New Joined})) / 100. ]
Examples:
1) 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, and at the same time, you can say your attrition is 11.42%. This shows you lost 20 employees of 150, and 25 more joined, making the count 175.
2) Actual Employees No. Of people left No. Of Joined Total Employees (Opening BAL) (Attritions) (Current Headcount) 100 50 0 50
This is a special case where we are considering attritions only, keeping in mind that nobody has joined in a particular month.
So according to the formula: ((50 x 100) / 100) / 100 Which comes to 0.5, i.e., 50%. Now as you had 100 previously and now 0 joined, it makes 100 + 0 = 100. Now if you calculate 50% of 100, i.e., 100 x 0.5 = 50. This clearly shows that 100 - 50 = 50, which is your current headcount, and at the same time, you can say your attrition is 50%. This shows you lost 50 employees of 100, and 0 joined, making the count 50.
3) Actual Employees No. Of people left No. Of Joined Total Employees (Opening BAL) (Attritions) (Current Headcount) 500 200 100 400
So according to the formula: ((200 x 100) / (500 + 100)) / 100 Which comes to 0.3333, i.e., 33.33%. Now as you had 500 previously and now 100 joined, it makes 500 + 100 = 600. Now if you calculate 33.33% of 600, i.e., 600 x 0.3333 = 200. This clearly shows that 600 - 200 = 400, which is your current headcount, and at the same time, you can say your attrition is 33.33%. This shows you lost 200 employees of 500, and 100 more joined, making the count 400.
4) Actual Employees No. Of people left No. Of Joined Total Employees (Opening BAL) (Attritions) (Current Headcount) 8000 5000 500 3500
So according to the formula: ((5000 x 100) / (8000 + 500)) / 100 Which comes to 0.5882, i.e., 58.82%. Now as you had 8000 previously and now 500 joined, it makes 8000 + 500 = 8500. Now if you calculate 58.82% of 8500, i.e., 8500 x 0.5882 = 5000. This clearly shows that 8500 - 5000 = 3500, which is your current headcount, and at the same time, you can say your attrition is 58.82%. This shows you lost 5000 employees of 8000, and 500 more joined, making the count 3500.
Regards, Sharad