Understanding Attrition: Does a 5% Rate Mean 5 Employees Left? Can Someone Clarify?

Understanding Attrition Percentage

If the opening headcount is 100 and the attrition percentage is 5%, does it mean that 5 employees left the job?

Attrition rate = (Number of employees resigned) / (Number of employees in an organization + number of employees joined - number of employees resigned) * 100.

Is this formula correct? Can someone clarify my doubt, please? It's very urgent.

Dear Santosh, The attrition percentage can be calculated by considering the average number of employees leaving the organization month on month with the average employee strength for the same period. For example, in April, the employee strength is 100, and 5 employees leave, resulting in a 5% attrition rate. In May, the employee strength is 106. The average strength is calculated as (100+106)/2 = 103, and the number of employees leaving is 3. The average attrition is then calculated as (5+3)/2 = 4. The attrition rate is 4/103 = 3.8%.

Likewise, calculate this month on month to arrive at the attrition rate.

Regards, M.V. KANNAN

Yes, your understanding of the attrition percentage formula is correct. Attrition percentage, also known as employee turnover rate, is a measure of the rate at which employees leave an organization.

Attrition Percentage Formula

The formula you provided is the correct way to calculate the attrition percentage:
Attrition percentage = (No. of Employees resigned / (No. of employees in an org. + no. of employees joined - no. of employees resigned)) * 100

So, in your example, if the opening headcount is 100 and the attrition percentage is 5%, then it means that 5 employees have left the job during the given time period.

I hope this clarifies your doubt. Let me know if you have any further questions!